May 24, 2024 – According to sources familiar with the matter, as quoted by Bloomberg, Elon Musk’s artificial intelligence venture, xAI, is on track to complete a funding round in June, potentially pushing its valuation to over $24 billion.
Initially, the company had aimed to secure around $6 billion in funding earlier this month. However, the deal, which has been in the works since last year, has yet to be finalized.
The anonymous source revealed that xAI has recently been seeking up to $6.5 billion in funding and is planning to reach this goal within the next few weeks.
Founded in July 2023, xAI made its debut in the AI space with the launch of its first product, the Grok chatbot, in November of the same year. Recently, the company showcased its Grok-1.5 Vision multimodal model, which can process not only text but also images, documents, and tables.
The upcoming funding round is expected to bolster xAI’s ability to acquire more AI computing resources, enabling it to compete more effectively with industry giants like OpenAI and Anthropic. Musk recently announced that the next generation of xAI’s Grok model is currently being trained on 20,000 NVIDIA H100 GPUs, with the demand for AI GPUs expected to rise to 100,000 for the upcoming Grok 3.
