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Musk AI startup xAI raises $6b, now valued at $24b

Alex Omenye
Alex Omenye

Elon Musk’s AI startup, xAI, has raised $6 billion in a Series B funding round, boosting its post-money valuation to $24 billion.

This is as investors place significant bets on emerging competitors to companies like OpenAI in the escalating AI race.

The funding round attracted major investors, including Andreessen Horowitz and Sequoia Capital, according to a blog post by xAI on Sunday.

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

xAI plans to utilize the funds to launch its first products, develop advanced infrastructure, and accelerate research and development of future technologies.

“There will be more to announce in the coming weeks,” Musk stated in another X post following the funding announcement.

Companies such as Microsoft’s OpenAI and Alphabet are leading the fierce competition for generative AI dominance, driving substantial investments and innovations in this rapidly evolving sector.


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