Musk's xAI raises $6b fresh funding led by Andreessen Horowitz, Sequoia Capital

Musk's xAI raises $6b fresh funding led by Andreessen Horowitz, Sequoia Capital

xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Elon Musk’s artificial intelligence startup xAI has raised $6 billion in a Series B funding round backed by investors including Andreessen Horowitz and Sequoia Capital among others, the company said in a blog post on Sunday.

The money will be used to take xAI’s first products to market, build advanced infrastructure and accelerate research and development of future technologies, xAI said.

“There will be more to announce in the coming weeks,” Musk said in a post on X, in response to the announcement of the funding.

The AI race has been heating up, with several investors signing big checks for start-ups looking to compete with market leaders like OpenAI.

Though xAI did not say what it was valued at after the latest round of funding, other media reports previously suggested the company would be valued at between $18 billion and $24 billion.

Reuters could not immediately verify the valuation with xAI.

Reuters

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