xAI Raises $6 Billion in Series C Funding

Investing.com — xAI, the artificial intelligence start-up founded by billionaire Elon Musk, announced on Monday that it raised $6 billion in a Series C funding round.

This round saw participation from major players like NVIDIA (NASDAQ:NVDA) and AMD (NASDAQ:AMD). The latest funding round elevates xAI's valuation to over $40 billion, following a similar Series B funding round earlier this year.

Key participants in this round included prominent venture capital firms such as a16z, Kingdom (TADAWUL:4280) Holdings, and Sequoia. Investment powerhouses Morgan Stanley (NYSE:MS) and BlackRock (NYSE:BLK) also contributed, in addition to tech giants Nvidia and AMD.

xAI plans to deploy the new funds toward enhancing its AI infrastructure and developing its leading models, aiming to compete with major firms like OpenAI through its Grok AI model.

Elon Musk established xAI in March 2023.