Elon Musk’s xAI Secures $6 Billion to Expand AI Supercomputing and Product Development

The funding round doubles xAI's valuation to $45 billion and supports the growth of its flagship AI model, Grok, and the Colossus supercomputer.

xAI raised $6 billion in a Series C funding round, doubling its valuation to $45 billion and bringing its total capital raised to $12 billion.
Major investors include Nvidia, AMD, Andreessen Horowitz, Blackrock, Fidelity, and Kingdom Holdings, which contributed $400 million.
The funds will be used to expand the Colossus supercomputer to 200,000 Nvidia GPUs and accelerate the development of xAI’s AI models and products.
xAI's flagship AI model, Grok, powers tools on X (formerly Twitter) and integrates with other Musk-led companies like SpaceX and Tesla, though some Tesla shareholders have raised concerns about resource diversion.
Musk has accused OpenAI and Microsoft of anti-competitive practices, while xAI leverages data from X and other Musk ventures to compete in the generative AI market.