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Elon Musk's artificial intelligence company, xAI, has raised an impressive $6 billion in its Series C funding round. The announcement, made on Monday, highlighted the participation of major players such as Sequoia Capital, Nvidia, AMD, and several sovereign wealth funds from Saudi Arabia, Oman, and Qatar.
The funds will enable xAI to expand its infrastructure, develop new products, and accelerate its research and development. Musk shared the news on X (formerly Twitter), humorously referencing the iconic "Jaws" movie line with, “We are gonna need a bigger compute!”
xAI has made significant progress since its inception in March 2023. It unveiled *Colossus*, the world’s largest AI supercomputer powered by 100,000 Nvidia Hopper GPUs, with plans to double its capacity to 200,000 chips. Additionally, the company released Grok 2, a next-generation chatbot API, alongside Aurora, its image-generation model.
Musk’s focus on scaling compute power underscores the growing demand for advanced microchips to train and operate AI models. Nvidia and AMD, key strategic investors in the funding round, are central to this effort. xAI is also training Grok 3, aiming to deliver groundbreaking consumer and enterprise products designed to revolutionise everyday life.
Since its previous $6 billion Series B funding round in May, xAI has seen rapid growth, including the launch of Grok on X and the evolution of its platform. While its post-Series C valuation remains undisclosed, xAI was previously valued at $50 billion.
The startup’s ambitious mission to "understand the true nature of the universe" drives its innovations. With this latest funding, xAI is set to push the boundaries of AI technology further, shaping the way we live, work, and interact with the digital world.
