Elon Musk’s AI startup raises $6 billion and seeks to build supercomputer

“xAI is excited to announce… our $6 billion Series B funding round,” the company said in a blog post on Sunday.

“The funds from the round will be used to carry the first xAI products to the market, build advanced infrastructure and accelerate research and development of future technologies,” he added.

That latest capitalization, which includes well-known venture investors and a Saudi prince, brings the company’s total valuation to $24 billion, based on a pre-funding figure of $18 billion cited by Musk himself.

Musk indicated on his X social media platform that there would be “more to announce in the coming weeks.”

The latest round of financing was mainly in the hands of Andreessen Horowitz’s Valor Equity Partners fund, Sequoia Capital and Prince Alwaleed Bin Talal, among others.

Earlier this month, Musk told investors that he planned to build a supercomputer dubbed a “computing gigafactory” to support the development of xAI.

The supercomputer in question would be “at least four times the size of the largest GPU clusters that exist today”, such as those used by the technology giant Meta (Facebook, Instagram, Whatsapp) to train its Artificial Intelligence models, according to said Musk, quoted by a news outlet in the sector.