Elon Musk’s xAI Secures $6 Billion, Expands AI Ambitions

The AI startup has raised $12 billion in total funding, launched new tools, and plans significant infrastructure upgrades to compete with industry leaders.

xAI, founded by Elon Musk in July 2023, has raised $6 billion in its latest funding round, bringing its total funding to $12 billion and achieving a $50 billion valuation.
The company’s flagship AI model, Grok, offers features like web search integration, PDF uploads, image analysis, and conversation summarization, and is now free for all users.
xAI is scaling its Memphis-based supercomputer, Colossus, which currently houses 100,000 Nvidia GPUs, with plans to double its capacity in 2025 to enhance AI training capabilities.
The startup has faced scrutiny over privacy concerns, as Grok’s training data includes user posts from X (formerly Twitter), prompting regulatory investigations in Europe.
xAI aims to integrate its AI models across Musk’s companies, including Tesla and SpaceX, while growing its team from 12 to over 100 employees within 16 months.