Elon Musk’s xAI recently secured $6 billion in fresh funding, as revealed in a regulatory filing. This marks the conclusion of a long-anticipated funding round that valued the AI startup at over $40 billion.
The equity financing involved contributions from 97 investors, with investments as low as $77,593. However, the filing with the US Securities and Exchange Commission did not disclose the investors’ names, valuation details, or revenue figures. In October, Bloomberg News reported that xAI aimed to raise funds at a $40 billion valuation.
Elon Musk, who founded xAI in 2023, has been actively raising funds for the venture. He previously closed a $6 billion funding round in May, which valued the company at $24 billion, including the raised amount. Notable investors such as Sequoia Capital and Andreessen Horowitz, who are also linked to Musk’s other businesses, have participated in these funding efforts.
Part of this investment supported xAI’s supercomputer facility in Memphis, which opened earlier this year. Local officials hailed it as the “largest multibillion-dollar investment in Memphis’s history.” This growing facility is now attracting major tech players like Nvidia Corp., Dell Technologies Inc., and Super Micro Computer Inc.
The startup’s flagship product, Grok, is a chatbot available exclusively to paying users of X, formerly known as Twitter.
