Elon Musk’s startup xAI raised USD 6bn in investment
Elon Musk’s xAI startup has raised a round of funding. The AI project has received an investment of USD 6 billion. The Series B round puts the company’s valuation at USD 24 billion. Previously, the startup’s valuation was USD 18 billion. Firms such as Andreessen Horowitz and Sequoia Capital participated in the funding.
Demand for AI technologies is growing rapidly, and so is interest in developers of such products. In addition, investors actively support startups that can compete with the market leaders. OpenAI, in particular, is strengthening its position by regularly improving its AI ChatGPT.
xAI plans to use the investment to enter the market. The startup is ready to present its developments to the general public. New developments and research activities will also use part of the funds.
Experts are still cautious about xAI’s products and activities in general. The company’s founder, Elon Musk, is traditionally secretive and does not disclose project details. However, the AI race is attractive, and investors closely follow the project’s development. Giants such as Microsoft and Alphabet are leading the way, developing their own artificial intelligence models and investing in various startups.
What is known about xAI’s activities?
According to Musk, the startup’s team is working on building a supercomputer. Plans include the development of a new facility in Memphis. The company is hoping for government support. It is seeking tax credits and other business development incentives. This will include a portion of the investment from the funding round.
xAI hopes that creating the supercomputer will help the company quickly achieve a high position in the market. The development will speed up the training of new artificial intelligence models. The team also plans to expand its product range. So far, the company has only released the Grok chatbot. AI features:
– based on generative AI;
– available on social network X;
– designed for casual communication;
– can make jokes and give witty answers to questions.
In Musk’s view, Grok will be a stimulus for other chatbots, which usually focus on formal interaction.
Since March 2024, the businessman has been in talks with a city in Tennessee. The parties are discussing the construction of a new facility that could be Memphis’s biggest investment.
Elon Musk considers xAI a priority project because of its promising niche. The billionaire has previously stated that he plans to complete the facility by the end of 2025.
