Elon Musk's AI startup xAI announced that it has secured $6 billion in its Series C funding round, with key investments from NVIDIA (NVDA, Financial) and AMD (AMD). This recent financing round elevates xAI's valuation to over $40 billion. Other notable participants in the funding include major institutions like Morgan Stanley, BlackRock, and venture capital firms such as a16z, Kingdom Holdings, and Sequoia Capital.
The newly raised funds will be directed towards building expansive AI infrastructure and further developing its flagship model, Grok. Founded by Musk in March 2023, xAI continues its rapid growth trajectory, following a similar $6 billion Series B round earlier this year. Grok, xAI's generative AI model, supports several features on the X platform, including chatbots available to X Premium subscribers and free users in certain regions.
