Elon Musk's xAI secures $6 billion in series C funding to fuel AI innovation

Elon Musk

xAI, the artificial intelligence firm co-founded by Elon Musk, has raised $6 billion in its Series C funding round from key investors including A16Z, BlackRock, and Sequoia Capital, the firm said in a blogpost on December 24.

Strategic investors NVIDIA and AMD also participated in the round.

With the new funding, the company aims to drive forward its AI infrastructure, including the deployment of its flagship Grok language model and Colossus supercomputer. This funding is also poised to accelerate product offerings for both enterprise and consumer markets, particularly with recent launches like Grok 2 and Aurora, an AI-driven image generation model.

"The funds will help xAI expand its capabilities in developing next-generation AI solutions that could redefine various industries," the firm's blogpost said.

As xAI looks to grow its ecosystem, the company has emphasised its commitment to making AI tools more accessible and impactful in everyday applications.

The funding comes just six months after the firm raised its Series B round of $6 billion, which was backed by investors including Andreessen Horowitz and Sequoia Capital among others, the company said in a blog post on May 26.

The funding round saw the participation of Valor Equity Partners, Vy Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal and Kingdom Holding, amongst others apart from Andreessen Horowitz and Sequoia Capital, the startup said in the post.

Though xAI did not say what it was valued at after the latest round of funding, other media reports previously suggested the company would be valued at between $18 billion and $24 billion during its Series B round.

xAI got its start with Musk-owned social media platform X, formerly known as Twitter, where it helped build the Grok AI service.