Elon Musk’s artificial intelligence startup, xAI, has successfully raised $6 billion in fresh capital, according to an exclusive Bloomberg report. This funding round positions xAI with a valuation exceeding $40 billion.
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xAI Secured Equity Financing from Investors
Bloomberg cited a filing with the U.S. Securities and Exchange Commission (SEC), which indicated that 97 investors contributed to the equity financing, with individual stakes starting as low as $77,593. However, the company did not disclose the names of the investors, valuation specifics, or revenue figures.
Musk founded xAI in 2023 and has pursued aggressive fundraising efforts for the venture. Earlier this year, the company closed another $6 billion funding round, at which point it was valued at $24 billion, including the cash raised by the company.
Interestingly, many of xAI’s current investors, such as Sequoia Capital and Andreessen Horowitz, also back Musk’s other ventures, including X, the social media platform formerly known as Twitter.
How Does xAI Intend to Use the Funding?
The report stated that a portion of this funding will be allocated to building xAI’s supercomputer facility in Memphis, which became operational earlier this year. Meanwhile, xAI’s flagship product is Grok, a chatbot designed to compete in the AI market, and it is already accessible to paying subscribers on X.
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