Elon Musk's AI firm xAI raises $6 billion to boost research, development of future technology

Elon Musk-run artificial intelligence (AI) company xAI said on Monday that it raised $6 billion to accelerate the research and development of future technologies.

The AI firm shared the development on X, and responding to this, the tech billionaire said, "There will be more to announce in the coming weeks." In another post, Musk said the pre-money valuation was $18 billion. The company also added that the funds from the Series B funding round will be used to take xAI's first products to market and build advanced infrastructure. "xAI is primarily focused on the development of advanced AI systems that are truthful, competent, and maximally beneficial for all of humanity. The company's mission is to understand the true nature of the universe," the company said in a blog post.

xAI, which has unveiled an AI chatbot called 'Grok', raised funds from key investors, including Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal and Kingdom Holding, among others.

In addition, xAI said that it will announce more technology updates and products soon. Earlier this year, xAI raised $500 million in commitments from investors toward a $1 billion goal. Founded in 2023, xAI unveiled its first AI product in November last year and recently announced the Grok-1.5 model with long context capability, as well as Grok-1.5V with image understanding.