xAI, Elon Musk’s artificial intelligence startup, has raised $6 billion in Series C funding round from key investors including A16Z, Blackrock, Fidelity Investments, Kingdom Holdings, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners and Vy Capital, amongst others.
Strategic investors NVIDIA and AMD also participated and continue to support xAI in rapidly scaling our infrastructure.
Saudi Arabia’s Kingdom Holding Company (KHC) has invested $400 million in xAI. This marks KHC’s second investment in xAI, following an equal contribution during the Series B round.
The fresh funds raised will be used to accelerate its advanced infrastructure, ship groundbreaking products that will be used by billions of people, and accelerate the research and development of future technologies enabling the company’s mission to understand the true nature of the universe.
xAI is primarily focused on the development of advanced AI systems that are truthful, competent, and maximally beneficial for all of humanity.
Despite being a relatively new entity with no financial statements available from the past three years, xAI’s valuation has surged to $45 billion in the latest funding round, up from $25 billion in the previous Series B round.
Since the announcement of the $6 billion Series B in May 2024, xAI has made significant technical progress and shipped a multitude of key initiatives including:
- Colossus, xAI has established a decisive hardware advantage with the world’s largest AI supercomputer using an NVIDIA full-stack reference design with 100,000 NVIDIA Hopper GPUs. Compared to typical multi-year industry timeframes, Colossus was fully operational in 122 days and started running workloads just 19 days after the first servers were delivered. Soon, xAI will double the size of Colossus to a combined total of 200,000 NVIDIA Hopper GPUs, achieved by using the NVIDIA Spectrum-X Ethernet networking platform.
- Grok 2, our frontier language model with state-of-the-art reasoning capabilities
- xAI API gives developers programmatic access to our foundation models and is built on a new bespoke tech stack that allows multi-region inference deployments for low-latency access across the world.
- Aurora, xAI’s proprietary autoregressive image generation model for Grok enhances multimodal understanding, editing, and generation capabilities.
- Grok on 𝕏, leveraging the 𝕏 platform to understand what’s happening in the world in real-time. We recently added new features enhancing the 𝕏 experience like web search, citations, and our recent image generator, Aurora.
xAI’s most powerful model yet, Grok 3, is currently training and we are now focused on launching innovative new consumer and enterprise products that will leverage the power of Grok, Colossus, and X to transform the way we live, work, and play.
