Elon Musk’s artificial intelligence (AI) company xAI closed a $6bn investment round (£4.7bn), making it one of the best-funded competitors to OpenAI.
The startup, which is just a year old has built a large language model, the technology that underpins many recent advancements in generative artificial intelligent capable of creating text, images, videos, and voices similar to those of humans.
Musk, who owns the social network X, said that the funding round was one of the largest in the burgeoning AI sector. It valued the company at $8bn, before accounting for the $6bn invested.
The development of Generative AI is expensive, partly because it requires enormous amounts of computing power and electricity for LLMs to be trained. In a blog post, xAI stated: “The money raised will be used to bring xAI’s first products to the market, build advanced technology infrastructure, and accelerate research and development.”
Musk turned to several investors who had supported his previous ventures including the electric vehicle company Tesla and the takeover by him of Twitter, now called X. The investors included Andreessen Horowitz and Sequoia Capital, as well as Fidelity Management & Research Company and Kingdom Holding. Prince Alwaleed bin Talal is a Saudi prince who runs Kingdom Holding.
OpenAI was a co-founder of OpenAI. In March, Musk filed a lawsuit against OpenAI. He claimed that Altman and other executives had “breached the founding agreement” by pursuing private commercial success instead of working to benefit humanity. Musk was co-founder of OpenAI. In March, he sued OpenAI claiming that Sam Altman, and other executives, had “breached founding agreement” by working for private commercial success rather than benefiting humanity.
OpenAI, a US-based tech startup that works closely with Microsoft, faces competition from Google Gemini, Meta Llama, and other startups, such as Amazon’s Anthropic, and France Mistral.
Musk posted xAI’s announcement to X on Monday, stating that the company’s “mission is to understand the universe” and the pursuit of truth must be done with rigor, regardless of popularity or political correctness.
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