Elon Musk's AI company, xAI, has successfully raised $6 billion in its latest funding round, involving 97 investors. The minimum investment was $77,593, though the identities of the investors remain undisclosed. Notable investors include Andreessen Horowitz, BlackRock, Fidelity, Morgan Stanley, Sequoia Capital, NVIDIA (NVDA, Financial), and AMD (AMD).
This funding round doubles xAI's total funding to $12 billion, with a valuation target of $50 billion, twice as much as six months ago. Only previous xAI investors were allowed to participate in this round, with some investors potentially acquiring up to 25% of xAI's shares.
xAI plans to raise more funds next year. Meanwhile, competitors like Anthropic and OpenAI have also raised significant amounts, with Anthropic securing $4 billion from Amazon and OpenAI raising $6.6 billion in October.
xAI aims to compete with major AI players by leveraging data from Musk's companies, such as Tesla and SpaceX, to enhance its models. However, Tesla shareholders have expressed concerns over resource allocation.
