Elon Musk’s xAI raises $6B from Valor, a16z, and Sequoia

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Elon Musk’s AI startup, xAI, has raised $6 billion in a brand new funding spherical, it stated immediately, in one of many largest offers within the red-hot nascent area, as he shores up capital to aggressively compete with rivals together with OpenAI, Microsoft, and Google.

Valor Fairness Companions, Vy Capital, Andreessen Horowitz, Sequoia Capital, Constancy, Prince Alwaleed Bin Talal and Kingdom Holding are among the many backers who’ve invested in xAI’s Sequence B funding, the startup wrote in a weblog publish.

The funding confirms TechCrunch‘s reporting from April that xAI was seeking to increase $6 billion. xAI on the time was finalizing the spherical that may have given it a valuation of $18 billion, TechCrunch reported on the time. xAI, which began simply final yr and has spun out of social community X, and whether or not X had additionally invested.

Musk confirmed that the funding spherical was valued at $18 billion pre-money.

Musk is likely one of the earliest and most high-profile entrepreneurs within the AI area. Tesla, a automobile firm he leads, is the highest EV carmaker with self-driving applied sciences. He’s additionally a co-founder of OpenAI, a startup wherein he has invested tens of hundreds of thousands of {dollars}. Musk’s love for OpenAI has waned since: In March, he sued OpenAI and its co-founder Sam Altman for allegedly betraying its mission assertion and turning into a “closed-source de facto subsidiary” of Microsoft. He has additionally accused Google of coding bias into its AI merchandise.

After forming xAI yr, Musk launched its chatbot ChatGPT-rival Grok 1.0 mannequin in November. Later, the corporate made the mannequin obtainable via a chatbot to Premium+ customers — who pay $16 a month — on X. In April, the corporate launched the brand new Grok 1.5 mannequin and in addition allowed Premium customers on X to entry the chatbot. Moreover, the Musk-owned firm previewed Grok’s multimodal capabilities in April. Earlier this yr, the corporate open-sourced the Grok mannequin however with none coaching code.

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xAI plans to deploy the funds from the brand new financing spherical to take its first set of merchandise to market, construct superior infrastructure, and speed up the analysis and improvement of future applied sciences, it stated in the blog post. The corporate is more likely to search for partnerships to introduce Grok to customers past X.

The corporate claims that it goals to develop “truthful” AI techniques. Although, Grok’s information abstract characteristic on X is reported to hallucianate and generate deceptive info.

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