Elon Musk’s artificial intelligence venture, xAI, has raised $6bn in a new round of funding, according to a recent regulatory filing.
This capital injection is part of a funding effort that has been ongoing for several months and values the startup at more than $40bn, reported Bloomberg.
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The equity financing attracted 97 investors, with contributions starting from as little as $77,593. Details of the investors, as well as the company’s valuation and revenue, were not disclosed in the filing with the US Securities and Exchange Commission, which was submitted on Thursday.
Bloomberg had previously reported in October that xAI was in the process of securing new funding at a valuation of $40bn, not including the capital raised.
Musk, who founded xAI in 2023, has not yet commented on the recent developments.
xAI has been on an aggressive fundraising spree since its inception.
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By GlobalDataThe company completed another $6bn funding round in May, which at the time placed the company’s value at $24bn, including the funds raised. Notably, many of xAI’s current investors, such as Sequoia Capital and Andreessen Horowitz, have also invested in Musk’s other ventures, including X.
The influx of funds arrives as xAI aims to expand its presence in the artificial intelligence sector.
The company is enhancing its supercomputer facility in Memphis, Tennessee, which was launched earlier in 2024, with the ambition to accommodate at least one million graphics processing units.
At that time, local officials have hailed the project as the “largest multibillion-dollar investment in the city of Memphis’s history.” The expansion is drawing other prominent technology firms to the region, including NVIDIA, Dell Technologies, and Super Micro Computer.
xAI’s flagship product, a chatbot named Grok, is currently accessible to paying users of X, the social media platform previously known as Twitter.
In a separate development, Musk has escalated his legal battle against OpenAI, the creator of ChatGPT, alleging attempts to monopolise the market for generative artificial intelligence and impede competitors.
In November 2024, OpenAI secured a funding round of $6.6bn, which brought its valuation to $157bn.
