Elon Musk’s xAI Raises $6B to Compete with OpenAI

(TheConservativeTimes.org) – Elon Musk’s artificial intelligence company xAI has raised six billion dollars in an investment round that will make it one of the best-funded challenges against OpenAI.

The startup has rapidly built its large language model that would underpin many of the advances in artificial intelligence. The funding round currently values the company at eighteen billion dollars before even taking into account the six billion dollar investment.

Generative AI is very expensive to develop, especially because of the power it takes to train these large language models. In a blog post, xAI said, “The funds from the round will be used to take xAI’s first products to market, build advanced infrastructure, and accelerate the research and development of future technologies.”

Musk relied on some of the same investors that helped him with his other companies such as Tesla and helped him in his overtaking of Twitter. They included investors such as Andreessen Horowitz, Sequoia Capital and Fidelity Management & Research Company, and Kingdom Holding.

OpenAI, which has been working closely with Microsoft, has been facing competition from other companies such as Google’s Gemini, Meta’s Llama, and now Elon Musk’s xAI.

There has been a substantial rise in investment interest in artificial intelligence, which could be the reason for the six billion dollar investment, as investors are understanding the possibilities of the market. Prior to Musk’s plan to create his own AI company, he was the co-founder of OpenAI before he filed a lawsuit against the company, saying that they had breached an agreement.

Elon wrote that the xAI has the “mission of understanding the universe, which requires maximally rigorous pursuit of the truth, without regard to popularity or political correctness.”

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