Elon Musk's xAI raises $6bn to rival OpenAI with chatbot Grok, investors include Kingdom Holding.

From Financial Times: 2024-05-27 05:10:54

Elon Musk’s AI start-up xAI raises $6bn at an $18bn valuation, becoming a top rival to OpenAI. Investors include Kingdom Holding, Valor Equity Partners, Andreessen Horowitz, and Sequoia Capital. xAI’s chatbot Grok integrates with Musk’s social media platform, X. Nvidia reports a 262% revenue jump due to high AI demand. Other companies invest billions in AI infrastructure.

Investors showed interest in xAI as an alternative to existing models like ChatGPT and Google’s Gemini. Musk pitches Grok as a “maximum truth-seeking” platform. Funding round excludes critics of Musk’s other projects like X and SpaceX. FT first reported on xAI’s potential $6bn raise in January, despite Musk’s denial then.



Read more at Financial Times: Elon Musk closes $6bn financing for OpenAI challenger xAI