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Elon Musk’s xAI Close to Raising $6 Billion

Apr 26, 2024 - pymnts.com
Elon Musk's AI startup, xAI, is reportedly nearing a funding round that would raise $6 billion from investors, valuing the company at $18 billion. Sequoia Capital, a Silicon Valley VC firm, has committed to investing in xAI, and other investors who participated in Musk's 2022 acquisition of Twitter (now renamed X) have also been approached. Musk launched xAI in July 2023 as an alternative to OpenAI's AI-powered chatbot, ChatGPT, and has been critical of OpenAI since leaving its board in 2018.

In November 2023, xAI introduced its AI model, Grok, which is designed to answer questions with wit and a rebellious streak. Grok has real-time knowledge of the world via the Musk-owned social media platform X and can answer questions that most other AI systems reject. In March, xAI unveiled its open-source AI model, Grok-1, a 314 billion parameter Mixture-of-Experts model trained from scratch by xAI.

Key takeaways:

  • Elon Musk's AI startup xAI is reportedly close to raising $6 billion from investors, which would value the company at $18 billion.
  • Sequoia Capital, a Silicon Valley VC firm, has committed to investing in xAI, and Musk has approached other investors who participated in his 2022 acquisition of Twitter.
  • xAI launched its AI model Grok in November 2023, which has capabilities rivaling those of Meta’s LLaMA 2 AI model and OpenAI’s GPT-3.5.
  • In March, xAI unveiled its open-source AI model, Grok-1, a 314 billion parameter Mixture-of-Experts model trained from scratch by xAI.
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