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coinpedia 2024-12-24 10:06:21

Elon Musk’s xAI Secures $6B Funding: Backed by Blackrock, NVIDIA, and More

Elon Musk’s xAI Secures $6B Funding: Backed by Blackrock, NVIDIA, and More

The post Elon Musk’s xAI Secures $6B Funding: Backed by Blackrock, NVIDIA, and More appeared first on Coinpedia Fintech News Trump’s recent announcement of an AI advisor in the white house is driving the AI market crazy. Adding to this, Elon Musk’s AI company, xAI, has raised a huge $6 billion in its Series C funding round. This funds flow will help xAI to grow and compete with major players like OpenAI. According to the CNBC report , the round is initially supported by A16Z, Blackrock, Fidelity, and Sequoia Capital. Additionally, tech giants like NVIDIA and AMD joined as strategic investors to assist xAI in building more advanced AI systems. The money will mostly be used to expand xAI’s supercomputer, Colossus, which helps power its AI projects. Right now, the supercomputer runs on 100,000 powerful Nvidia GPUs (a type of computer chip), but xAI plans to double that number to 200,000. This will make the supercomputer work faster and help xAI build better AI tools and products. In his recent X post, Elon Musk stated that by 2030, AI will be smarter than all humans combined. He’s so sure about it that he says the chance of this happening is almost 100%. It is increasingly likely that AI will superset the intelligence of any single human by the end of 2025 and maybe all humans by 2027/2028. Probability that AI exceeds the intelligence of all humans combined by 2030 is ~100%. — Elon Musk (@elonmusk) December 23, 2024 xAI’s Fast Growth and Big Market Value xAI has grown quickly since it started in July 2023, reaching a valuation of $50 billion. This makes it a serious competitor to OpenAI, which is worth $157 billion. In just a short time, xAI has outpaced other AI companies like Anthropic, which is worth $19 billion, and Perplexity, which is worth $2.8 billion. Moreover, the company is also hiring a lot of new employees to help it grow even faster. One of the key products xAI is working on is Grok, a chatbot that helps users with things like text rewriting and image generation. Grok is now available to more people, including through an app on iPhones and on its website, Grok.com. Who Invested in xAI? As per reports, xAI’s latest funding round was exclusive to investors who had supported the company in earlier rounds. Plus individuals who were involved in funding Elon Musk’s Twitter acquisition were allowed to purchase up to 25% of xAI’s shares. As of now, the Series C round had almost 100 investors, including major venture capital firms and sovereign wealth funds. The minimum amount needed to invest was around $77,593. With this funding, xAI is ready to keep growing and pushing the limits of what AI can do. In short, xAI is competing with Open AI and others in the market. Though the path for xAI looks promising it will be interesting to see if Elon’s popularity pushes the company to touch the roof in terms of building the company a tech leader.

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