Elon Musk’s AI startup, xAI, has recently raised $6 billion in funding from investors, including venture capitalists like Sequoia Capital and Saudi Arabia’s Kingdom Holding. The pre-money valuation of xAI is $18 billion.
Musk launched xAI as an alternative to OpenAI, a company he co-founded with Sam Altman before leaving the board in 2018. Musk’s vision for the future of artificial intelligence differs from what he sees in OpenAI, and xAI aims to tackle challenges in the industry with a different approach. The influx of funding will be crucial for Musk as he moves forward with xAI’s development.
Despite being less than a year old, xAI has already attracted investments from prominent VCs like Andreessen Horowitz and Sequoia Capital, as well as Saudi Arabia’s Kingdom Holding. Musk hinted at more funding news to come in the following weeks. He made the announcement about xAI’s Series B funding round on Sunday via a blog post.
Musk expressed disappointment in the direction that OpenAI had taken, stating that it no longer aligned with his original vision for the company. He accused OpenAI of deviating from its nonprofit mission and becoming a closed-source, profit-driven entity controlled by Microsoft. Musk’s lawsuit against OpenAI in February further emphasized his concerns about the company’s trajectory.
Overall, this recent funding round represents a significant milestone for xAI as it continues to compete with OpenAI and shape the future of artificial intelligence.
