Elon Musk’s artificial intelligence startup xAI unveiled that it raised $6 billion In its latest funding round, the startup is making headway in its battle against bitter rival OpenAI.
Musk posted on his social media platform on Monday
“We’ll need a major reckoning!” Musk wrote in an apparent reference to the famous line from “Jaws.”
The need for “big compute” is likely a sign that Musk plans to use the investment to build larger processing centers to warehouse the supercomputers that will be needed to train and run more sophisticated AI models.
The company had raised $6 billion in a Series B funding round in May at a post-money valuation of $24 billion. In late November, xAI raised another $5 billion at a valuation of $50 billion, According to the Wall Street Journal.
Now, it appears that xAI has raised a mega round of $6 billion, but Musk did not disclose the valuation.
Investors in the latest funding round include Sequoia Capital, Morgan Stanley, BlackRock, Fidelity, Kingdom Holdings of Saudi Arabia, sovereign wealth funds of Oman and Qatar, Lightspeed Venture Partners, Valor Equity Partners, Dubai-based Vi Capital and UAE-based MGX. The company said.
In its latest announcement, xAI said it is training Grok 3, the latest version of its chatbot, which was originally scheduled to be available later this year.
Cash flows when Musk is engaged in a task Against AI arms race ChatGPT creator OpenAI, the company he co-founded Which is now run by Sam Altman.
Musk, who later left OpenAI Losing power struggle against Altman and other co-founders are suing the company and its major financial backer Microsoft.
He alleges that Microsoft and OpenAI, It was worth about $157 billion as of OctoberIllegally tried to monopolize the market for generic artificial intelligence and sideline competitors.
