Elon Musk’s xAI Hits $50 Billion Valuation After Major Funding Round

The AI startup, founded just 16 months ago, has doubled its valuation this year and secured $5 billion in new funding.

xAI, Elon Musk's AI startup, has reached a $50 billion valuation following a $5 billion funding round led by prominent investors like Sequoia Capital, Andreessen Horowitz, and Qatar Investment Authority.
The company's valuation has more than doubled since the spring, when it was valued at $24 billion after a $6 billion funding round.
xAI plans to use the funds to acquire 100,000 additional Nvidia chips to expand its Colossus supercomputer, which it claims is the most powerful AI training system in the world.
Founded in July 2023, xAI has rapidly grown to compete with major AI players like OpenAI, Anthropic, and Google, while integrating its AI chatbot, Grok, into X (formerly Twitter).
Musk continues his legal battle with OpenAI and Microsoft, accusing them of anti-competitive practices while positioning xAI as a rival in the booming AI industry.