xAI: Musk's AI company raises six billion dollars in financing round
With xAI, tech billionaire Elon Musk wants to compete with other AI models. In his most recent financing round, he won over further investors.
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In his recent Series C financing round, tech billionaire Elon Musk was able to raise around six billion dollars in capital for his company xAI. It aims to compete with OpenAI, Meta and Co. in the development of AI models. Investors include Sequoia Capital, Nvidia and AMD.
Other investors include Andreessen Horowitz, Morgan Stanley, BlackRock, Fidelity, Saudi Arabia's Kingdom Holding, the sovereign wealth funds of Omar and Qatar, Lightspeed Venture Partners from California, Valor Equity Partners from Chicago, Vy Capital from Dubai, and tech investor MGX from the United Arab Emirates.
Nvidia and AMD as strategic partners
In a blog post, the company emphasized that Nvidia and AMD would support xAI as strategic investors to further scale its infrastructure. This includes the super-computer Colossus, which was completed in its first iteration with a whopping 100,000 Nvidia H100 (Hopper) accelerators and trains the AI model behind the xAI chatbot Grok. As xAI is now announcing, the capacity of Colossus is to grow to 200,000 H100 accelerators, using Nvidia's Ethernet network platform Spectrum-X.
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In May, xAI also raised six billion dollars in capital at the end of its previous Series B financing round. Musk's rival company OpenAI agreed with investors in its most recent financing round that it would lose its non-profit status. Musk, who co-founded OpenAI in 2015, is now fighting this in court. According to a Financial Times report, Elon Musk complained during the last funding round for OpenAI that one condition for investors was that they were not allowed to invest their money in other AI companies. Musk's own AI company, xAI, is also said to be affected by this.
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