xAI raises $6bn Series B at $24bn valuation
Investors including Valor Equity, Vy Capital, Andreessen Horowitz, Sequoia and Fidelity backed the round, roughly a year after xAI's founding, to fund a supercomputer for xAI's next model.
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xAI, the AI company Elon Musk had founded roughly a year earlier, closed a $6 billion Series B round at an $18 billion pre-money valuation, putting its post-money valuation at $24 billion. Investors named in the announcement included Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research and Kingdom Holding, the investment vehicle of Saudi Prince Alwaleed bin Talal.
xAI said the funds would go toward bringing its first products to market, building infrastructure and accelerating research — language widely read as covering the supercomputer cluster Musk said would be needed to train the next version of Grok, the company’s chatbot, which had shipped as an open-weight model, Grok-1, two months earlier.
The round made xAI one of the best-funded AI labs outside the group already backed by the largest technology companies, despite having no comparable cloud-infrastructure parent, and set up the far larger compute spending — including the Colossus supercomputer project — that followed later in 2024.