Elon Musks xAI raises $6 billion

Elon Must announced that his AI startup company xAI has raised a series B of funding at a pre-money valuation of $18 billion.

The company has raised a whopping $6 billion taking the total valuation to mouth watering $24 billion.

Musk is one of the founders of OpenAI, the company behind the revolutionary ChatGPT, and this would be his second venture in the Artificial Intelligence field. xAI is touted to be geared towards disrupting healthcare and owns the proprietary conversational AI Model Grok. Speculators have also suggested possible synergies with Musks other start up Neuralink.

This funding round was backed by investors including Andreesen Horowitz and Sequoia Capital

The funding is expected to take xAI’s first products to market and build an advanced infrastructure for greater research and development.

The Artificial Intelligence landscape is now probably highest altitude battleground between Big Tech as Alphabet and Microsoft have been looking to enhance their search engine capabilities and bring to market generative AI that can be used by individuals for multitude of tasks. However, valuations are sky high, and this could be another bubble like the virtual reality, gaming and internet bubbles that have occurred before in Silicon Valley.