Elon Musk's AI platform, xAI, has completed a $6 billion Series C funding round with notable investors such as NVIDIA (NVDA, Financial), AMD (AMD), and Morgan Stanley among the 97 participants. This round has propelled xAI’s valuation to over $40 billion, doubling its valuation from six months ago. Prior investors were exclusively allowed in this round, with some receiving up to 25% of xAI shares.
With total funding now exceeding $12 billion, xAI aims for a $50 billion valuation. The funds will accelerate infrastructure development, focusing on their powerful Grok 3 model, which competes with OpenAI's latest flagship model. These investments will also support the construction of a supercomputer in Memphis, Tennessee, crucial for training AI models.
xAI, founded in July 2023, has made significant strides, including developing the Colossus supercomputer and launching the Aurora image generation model. The company plans another funding round next year to further its mission of understanding the universe's true nature.
