A series B round of funding for Elon Musk’s xAI company has raised $6 billion from investors such as Fidelity Management & Research Co. and the venture capital firm Sequoia Capital.
The company that makes AI said in a blog post on Sunday that the round also included investments from Valour Equity Partners, Vy Capital, Andreessen Horowitz, Saudi Arabia’s Prince Alwaleed Bin Talal, and Kingdom Holding.
The company said, “The money from the round will be used to bring xAI’s first products to market, build advanced infrastructure, and speed up the research and development of new technologies.”
“xAI’s main goal is to create advanced AI systems that are honest, smart, and assist everyone as much as possible.” The company said in a blog post that its goal is to find out what the universe is really like.
Musk said on his social media platform X that xAI had a “pre-money valuation” of $18 billion. This is the amount of money that a startup is worth in terms of equity before it raises money. He also said, “In the coming weeks, we’ll have better news.”
The CEO of Tesla TSLA, +3.17% started his own AI company last year as an alternative to OpenAI, which Musk helped to create but later left. After forming a partnership with Microsoft Corp. MSFT, +0.74%, he sued OpenAI in March, saying that the company and its leaders had put money before people.
Musk’s xAI released Grok, a competitor to ChatGPT, in November and gave it to X subscribers. In March, it was made available to everyone as “open source” software.
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