xAI makes it official: raises $6 billion at a $24 billion valuation

Elon Musk’s generative AI startup xAI officially announced its long-awaited fundraising, making it the second most valuable generative AI company in the world, behind only competitor OpenAI.

The $6 billion round included investments from Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Co., Prince Alwaleed Bin Talal and Kingdom Holding Co., among others.

The new financing values ​​the company at $24 billion after money, well behind OpenAI’s $86 billion valuation, but well ahead of the $18 billion generative AI startup that is now valued Anthropic after its latest raise.

Earlier this month it was reported that another competitor, Paris-based Mistral AI, was approaching a round of around $600 million from existing investors General Catalyst and Lightspeed Venture Partners that would value it at $6 billion. Dollars.

Fresh money and new AI

The xAI round had been rumored for months. The company was announced last July and launched its ChatGPT competitor, Grok, last November. It unveiled its latest AI model, called Grok-1.5, earlier this year.

Grok trains with data from another of Musk’s companies, X, formerly Twitter.

“xAI is primarily focused on developing advanced AI systems that are truthful, competent, and maximally beneficial to all of humanity,” the company said in a blog announcing the round. “The company’s mission is to understand the true nature of the universe.”

It was also reported last week that xAI plans to develop a massive computer, what Musk called a “computing gigafactory” when speaking to investors, to train its next versions of its conversational AI.

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Illustration: Dom Guzmán

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