SAN FRANCISCO — Elon Musk’s artificial intelligence company, xAI, has raised $6 billion in a Series C funding round, doubling its valuation to $45 billion. This milestone follows a $6 billion funding round in May, bringing the company’s total financing to $12 billion.
The round attracted significant backing from leading investors, including Andreessen Horowitz, BlackRock, Fidelity, Lightspeed, Morgan Stanley, MGX, OIA, QIA, Sequoia Capital, Valor Equity Partners, Vy Capital, Nvidia, and AMD. Additionally, Saudi Arabia’s Kingdom Holdings invested $400 million, according to public filings.
xAI announced that the funding would accelerate the development of its advanced infrastructure, fuel groundbreaking products, and expand research initiatives. The company is currently training its most advanced AI model to date.
Unlike open participation, xAI limited the Series C round to previous investors, according to the Financial Times.
Founded last year, xAI gained rapid momentum with Grok, its generative AI chatbot powering various features on X (formerly Twitter). The tool is available to X Premium subscribers and selected free users globally.
The AI sector continues to attract massive funding. Rivals Anthropic and OpenAI have raised $4 billion and $6.6 billion respectively in recent months, with Anthropic securing Amazon’s backing. Meanwhile, PitchBook reports that AI venture capital activity reached $31.1 billion in over 2,000 deals during the third quarter of 2024, highlighting the industry’s unprecedented growth.
