Elon Musk, the founder of xAI, has announced that the company has raised $6 billion in funding from investors. The startup, which was founded just a year ago, has attracted investments from notable venture capital firms like Andreessen Horowitz and Sequoia Capital, as well as Saudi Arabia’s Kingdom Holding.
In a blog post on Sunday, xAI shared details about its successful Series B funding round. The company is gearing up to compete with Sam Altman’s OpenAI, another prominent player in the AI industry. Reports suggest that OpenAI’s value exceeded $80 billion after a deal that allowed employees to sell their shares. However, Musk has filed a lawsuit against OpenAI, claiming that the company strayed from its original nonprofit mission by partnering with Microsoft.
Musk has big plans for xAI and sees it as a viable competitor to OpenAI. In past statements, Musk expressed disappointment in the direction OpenAI has taken, stating that it has become a closed-source, profit-driven entity controlled by Microsoft, contrary to its initial purpose as an open-source, nonprofit organization. xAI’s recent funding success underscores Musk’s commitment to establishing it as a formidable force in the AI industry.
