Following a recent $6B fundraise, xAI has raised $12B total
xAI, Elon Musk's AI startup and the company behind X's chatbot Grok, has raised an additional $6B following its $6B Series B fundraiser this May. As part of the negotiations, investors who contributed to fund xAI and Musk's Twitter acquisition had access to up to 25% of xAI's shares.
Elon Musk's xAI is not falling behind its competitors in raising huge amounts of funding. According to reporting from the Financial Times, the company has secured $6 billion in a funding round in which only investors from xAI's previous round were allowed to participate. Speculation about the funding round began last month when it was made public that xAI wanted to raise as much as $6 billion and double its valuation from its previous round, bringing that number to $50 billion.
It should be noted that, as part of the negotiations, investors who contributed to Musk's acquisition of Twitter obtained access to up to a quarter of xAI's equity across both funding rounds. The Financial Times lists Fidelity, Oracle co-founder Larry Ellison, Saudi Arabia’s Prince Alwaleed bin Talal, Twitter founder Jack Dorsey, and Silicon Valley venture firms Sequoia Capital and Andreessen Horowitz as some investors set to benefit from the arrangement.
xAI's funding has not been without controversy. Last month, Elon Musk revived and expanded his lawsuit against OpenAI. The new claims included one accusing OpenAI of actively trying to eliminate its competition by keeping investors from spending money on five rival foundation model startups including xAI.
