Elon Musk’s xAI valued at $24 billion post fresh funding of $6 billion

Elon Musk’s AI startup xAI raised $6 billion in series B funding, hence making its post money valuation of $24 billion as investors bet big on competitors to companies such as OpenAI in the intensifying AI race.

The funding round was backed by investors including Andreessen Horowitz and Sequoia Capital, the company said in a blog post on Sunday.

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The company’s pre- money valuation was $18 billion, as Musk said in a post on X.

The money will be utilised into taking the startup’s first product to market, build advanced infrastructure and accelerate research and development of future technologies, xAI said.

In another post on his social media platform, the Tesla founder said, “There will be more to announce in the coming weeks.”

Tech giants such as Microsoft backed OpenAI and Alphabet’s are among those leading the fierce race for generative AI dominance, driving significant investments and innovation in the rapidly evolving landscape.