Elon Musk's artificial intelligence company xAI has successfully raised $6 billion from a consortium of key investors to support the expansion of its technology.
The funding, announced on the company's website Sunday, will be utilized to "bring xAI's first products to market, build advanced infrastructure, and accelerate the research and development of future technologies."
"xAI will continue on this steep trajectory of progress over the coming months, with multiple exciting technology updates and products soon to be announced," it said.
"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 Series B funding round attracted investors like Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal, and Kingdom Holding, among others.
Developing cutting-edge AI technology demands significant investment, particularly in high-end hardware. Nvidia's upcoming Blackwell B200 AI graphics cards, essential for AI development, are priced between $30,000 and $40,000 each.
According to The Information, xAI requires 100,000 of Nvidia's current H100 chips to construct a supercomputer for an enhanced version of its Grok AI chatbot. Musk has reportedly informed investors that the new data center is scheduled to be launched by the fall of 2025.
Microsoft has already entered a multi-billion dollar partnership with OpenAI. Meanwhile, OpenAI CEO Sam Altman is reportedly seeking trillions of dollars to revolutionize the global chip industry. Musk, a co-founder of OpenAI, is currently suing the company, alleging it has strayed from its original mission to benefit humanity.
In a post on X, the social media platform formerly known as Twitter that Musk owns, he encouraged potential employees to join xAI if they are committed to the company's mission of "understanding the universe, which requires maximally rigorous pursuit of the truth, without regard to popularity or political correctness."
The company also said in its official statement that xAI is hiring for numerous roles, and it is seeking talented individuals ready to join a small team focused on "making a meaningful impact on the future of humanity."
Musk revealed in July last year the founding of xAI, with the ambitious goal of unraveling the "true nature of the universe." Despite his active engagement in advancing AI, Musk has been a vocal advocate for cautious and responsible development of the technology.
In March, Musk announced that xAI's chatbot, Grok, would be available to premium subscribers on X.
