Elon Musk’s artificial intelligence venture, xAI, has secured a staggering $6 billion in its latest funding round, according to a TechCrunch report, citing a Securities and Exchange Commission filing on Thursday. This brings the company’s total capital raised to $12 billion in just one year, signaling its rise in the competitive AI landscape.
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xAI Received Funding from Some Prominent Investors
Notably, this funding round included 97 investors, each contributing a minimum of $77,593. While the filing left investor identities unnamed, xAI later confirmed funding from prominent investors such as Andreessen Horowitz, BlackRock (BLK), Fidelity, Nvidia (NVDA), AMD (AMD), and Sequoia Capital, among others.
According to a Financial Times report, only existing xAI investors were eligible to participate in this round, with up to 25% of shares reserved for those who had supported Musk’s acquisition of the social media platform Twitter, now called X. This exclusive approach indicates Musk’s strategy of rewarding loyal stakeholders while aiming for xAI’s rumored valuation of $50 billion.
xAI Is Growing Rapidly
Founded just last year, xAI has rapidly grown, offering new features and handling more tasks. Its flagship generative AI model, Grok, has become deeply integrated into X (formerly Twitter), powering features like chatbots, image generation, and news summarization. There have been reports suggesting that Grok could soon handle more tasks, such as refining X’s search features and analytics.
Operationally, xAI has grown its team from 12 to over 100 employees in under a year. Despite its success, xAI reportedly plans another fundraising round next year to sustain its ambitious growth trajectory.
What Is the Prediction for Tesla Stock?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 13 Buys, 12 Holds, and nine Sells. Over the past year, TSLA has soared by more than 60%, and the average TSLA price target of $293.76 implies a downside potential of 31.8% from current levels.
