Elon Musk’s xAI Raises Billions, Aims to Rival OpenAI’s ChatGPT
Elon Musk’s AI startup xAI has secured $6 billion in Series B funding, bolstering its position in the competitive AI landscape. The funding round attracted investments from notable venture capital firms like Andreessen Horowitz and Sequoia Capital, as well as Saudi Arabia’s Kingdom Holding.
Musk shared the news on X, the platform formerly known as Twitter, stating that more announcements would follow in the coming weeks. He also disclosed xAI’s impressive pre-money valuation of $18 billion, reflecting investor confidence in the company’s potential.
The substantial funding will be crucial for xAI as it aims to rival OpenAI, the creator of the highly acclaimed ChatGPT. Musk, who co-founded OpenAI before leaving its board in 2018, has expressed disappointment in the company’s direction, particularly its partnership with Microsoft, which he believes contradicts its original nonprofit mission.
In February, Musk filed a lawsuit against OpenAI, accusing the company of violating its nonprofit status through its collaboration with Microsoft. The $6 billion in funding will enable xAI to pursue its ambitious goals, including building advanced infrastructure and accelerating research and development of future technologies.
As the AI race intensifies, xAI’s successful funding round positions it as a strong contender in the field, with Musk’s vision and the backing of prominent investors set to shape the company’s future trajectory.
