Elon Musk Raises $6 Billion For Its New Startup xAI

Elon Musk raises funding of $6 Billion for his new AI startup xAI. The company aims to increase its valuation to $24 Billion and become the second-largest AI company. Open AI has the first-mover advantage with the current valuation of $86 billion. Everyone is curious to know more about the increasing competition in the AI world. As every big businessman is moving towards AI startups, they understand the power of AI. Thus, the world’s top businessman is also making its way to enter the top position in the AI industry.

Elon Musk raises $6 Billion for the new AI startup xAI. The company is looking to utilise these funds for research and development. There has been a curiosity among the people to know more about the future plans of the company. Investors are also taking an interest in the company because Elon Musk owns good database resources that can be beneficial for the company.

Elon Musk owns X, the most active social media platform. He also has a contribution to Tesla. Thus, Elon Musk can use the data from X and its current updates to feed its Chatbot. Elon Musk can also refer to the data from X and Tesla’s visuals to train Grok. Thus, it can learn a lot of things based on the data. However, Elon Musk still mentions the need for much more data to make it work better.

xAI started in July 2023. Musk didn’t reveal much about the company’s upcoming plan. However, he released Grok in November of the same year. He introduced the next version of the Grok which is Grok 1.5 at the start of 2024. The company also provide Grok training through Oracle. Larry Ellison is the Oracle founder. They both have a good bond and often support each other in their mission.

Elon Musk’s xAI has currently raised around $7 billion in total. Apart from that, xAI also received funding from Elon Musk himself worth $750 million. In contrast, X has also invested $250 million. X investors will also have a 25% share in xAI. Several AI companies are coming up in the competition. However, Elon Musk’s resources make him stand out in the competition. It is already becoming the second big company after Open AI. Investors also believe in the power of data that Elon Musk has access to including X and Tesla. Apart from that, X’s valuation fell almost 50% with Tesla shares falling in the previous few months.