Billionaire Elon Musk's artificial intelligence (AI) company on Monday, December 23, raised $6 billion from marquee investors like BlackRock, Nvidia Corp., and AMD, among others, to expand AI infrastructure, according to the company's official blog note posted on Monday.
According to the company disclosure, the company raised $6 billion in a Series C round. This is the second funding round in 2024; the first was a Series B round in May 2024. xAI raised $6 billion in May from investors like Andreessen Horowitz, Sequoia Capital, among others.
“We have closed our Series C funding round of $6 billion with participation from key investors including A16Z, Blackrock, Fidelity Management & Research Company, Kingdom Holdings, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners and Vy Capital, amongst others. Strategic investors NVIDIA and AMD also participated and continue to support xAI in rapidly scaling our infrastructure,” said xAI in the blog.
The AI company disclosed that the funds raised from the Series C round will be used to develop infrastructure and invest in research and development.
“The funds from this financing round will be used to further accelerate our advanced infrastructure, ship groundbreaking products that will be used by billions of people, and accelerate the research and development of future technologies enabling the company’s mission to understand the true nature of the universe,” said xAI in the release.
Highlighting the ventures since the Series B round, the company has launched key initiatives like - Colossus, the world's largest AI supercomputer in collaboration with Nvidia chips, the second version of their language model Grok 2, the xAI API which gives developers programmatic access foundation models of the company, Aurora the image generation model of Grok, and also successfully leveraging Grok on the social media platform X.
Looking ahead the company is training its most powerful model, Grok 3, along with other innovative and new “consumer and enterprise products that will leverage the power of Grok, Colossus, and X to transform the way we live, work, and play,” said the AI company.
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