Friday, 24 May 2024, Bengaluru, India
Elon Musk’s xAI is a startup company working on building artificial intelligence to accelerate human scientific discovery focusing on the mission to advance collective understanding of the universe. This AI startup is reportedly seeking to raise $6.5 billion in funds and is set to close a fundraising round in June with a valuation of $18 billion.
The startup was aiming to get $6 billion in the funding round but is now aiming for $6.5 billion and is expected to achieve this target in the next few weeks. xAI announced its plan to make Grok open source, which uses the data of X(Twitter). The startup previously raised $6 Billion on a pre-money valuation of $18 Billion. Investors who participated in the funding round included Lightspeed Venture Partners, Sequoia Capital, Tribe Capital, and Andreessen Horowitz. Elon Musk intends to gather training data for xAI from his companies, including X, Neuralink, SpaceX, and Tesla. The startup uses open-source software for chatbots, as well as its generative artificial intelligence tools and AI model.
Image source: Wikipedia
Musk co-founded Open AI in 2015 with Sam Altman and Greg Brockman but left the board after 4 years due to some disagreements. The rivalry between the two is publicly known by many as Musk once sued OpenAI’s CEO for moving from their original “non-profit” goal to “for-profit”. According to the Financial Times, Musk is seeking to raise funds for xAI close to $6 billion in a funding round led by Silicon Valley heavyweights and Andreessen Horowitz. This will value the startup at $18 million, the AI startup raised $19.15 billion in venture capital funds in the first quarter.
Musk told investors that xAI can compete with market leaders including Google, OpenAI, and Anthropic by using the data, technology, and business of other companies he works with such as X and Tesla. The startup is already popular by open-sourcing its AI Chatbot, Grok which uses AI technology and innovation for its commercial use. The market of AI is in profit these days as many known AI startups are getting millions of investments lately. The French startup “Hostlilic AI” raised $220 million for building AGI, while French AI startup Mistral raised $415 million with a valuation of $2 billion.
Conclusion
xAI is an AI startup that is seeking to raise $6.5 billion in funds and is set to close a fundraising round in June with a valuation of $18 billion. The startup was aiming to get $6 billion in the funding round but is now aiming for $6.5 billion and is expected to achieve this target in the next few weeks. AI announced its plan to make Grok open-source, which uses the data of X. The funding round startup saw participation from Lightspeed Venture Partners, Sequoia Capital, Tribe Capital, and Andreessen Horowitz. xAI can compete with market leaders including Google, OpenAI, and Anthropic by using the data, technology, and business of other companies he works with such as X and Tesla. The startup is already popular by open-sourcing its AI Chatbot, Grok which uses AI technology and innovation for its commercial use.
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