Elon Musk's XAI has reached a valuation of $50 billion after receiving new capital injection.

Original author: Jason Nelson

Original Title: Elon Musk's xAI Now Valued at $50 Billion Following Fresh Capital Injection

Source: Decrypt

Compiled by Koala, Mars Finance

In the booming artificial intelligence industry, xAI, along with Google, Microsoft, Meta, OpenAI, and Anthropic, has become one of the groups developing consumer-oriented artificial intelligence.

According to The Wall Street Journal, Grok developer xAI has raised $5 billion in new funding, with a valuation of $50 billion. The latest round of financing was announced for the first time on Friday, adding billions of dollars in funding raised in May.

According to reports, Valor Equity Partners, Sequoia Capital, and Andreessen Horowitz participated in the financing, with the Qatar sovereign wealth fund also involved, citing unnamed sources.

The company announced as early as May that these investment firms had previously invested $6 billion in XAI, enabling it to continue its "rapid development".

According to XAI, other companies investing in this AI developer include Vy Capital, Fidelity Management and Research Company, Prince Alwaleed bin Talal, and Kingdom Holding.

In the booming AI industry, XAI has joined the ranks of Google, Microsoft, Meta, OpenAI, and Anthropic as one of the companies developing consumer-facing artificial intelligence.

According to a report by the market intelligence company International Data Corporation in August, hundreds of billions of dollars have been invested in this emerging technology, with an expected investment of 632 billion dollars by 2028.

As part of this effort, TSL and XAI CEO Elon Musk in October expanded his search for investors in the Middle East, including Saudi Arabia. At that time, XAI was valued at $45 billion.

In the same month, Musk and XAI collaborated with the computer chip manufacturer Nvidia to expand their work on XAI's Colossus Supercomputer using its Spectrum-X network technology.

Elon Musk founded xAI in July 2023, aiming to develop an artificial intelligence that competes with his former company OpenAI and its flagship chatbot ChatGPT. When it was launched last year, the competitor of OpenAI announced that it had raised $134 million, bringing its initial funding to $1 billion.

Last autumn, XAI launched Grok for ChatGPT, which was integrated into X (formerly Twitter) for advanced subscribers. However, the launch of Grok was somewhat hasty, and XAI also acknowledged this fact.

Despite these early mistakes, Grok is still evolving. In August, Grok 2 was launched, which features image generation. According to Elon Musk, the next version of Grok is expected to be released in December.