Elon Musk’s xAI Secures $6 Billion in Funding

Elon Musk’s AI startup xAI has secured $6 billion, according to a filing with the SEC. The identities of the investors and the company’s valuation remain undisclosed.

In May, xAI raised $6 billion, bringing the total amount of funds raised to $12 billion. According to the Financial Times, investors from the previous round gained access to the new investments in xAI. 

In November, media reported on a forthcoming deal valuing the company at $50 billion. In October, the figure was $40 billion.

In September, xAI launched the Colossus AI training cluster using 100,000 Nvidia H100 graphics processors. Musk then announced plans to double the number of chips to 200,000. Now, media reports his intention to deploy at least one million processors.

This rapid expansion may face criticism from environmentalists. In August, environmental advocates accused the AI startup of exacerbating environmental issues in Memphis, Tennessee. The company allegedly used gas turbines for its new data center without permission.

In November, the billionaire announced plans to open a gaming studio within xAI to “make games great again.”

In December, the entrepreneur urged a federal court to halt the transformation of OpenAI into a fully commercial business. He also aims to prevent Sam Altman’s AI startup from requiring its investors to refrain from investing in competitors.

Musk filed the first lawsuit against OpenAI in March 2024, accusing the company and Altman of violating an agreement made at the firm’s inception “to develop technology for the benefit of humanity, not for profit.”

Back in June, the billionaire withdrew the lawsuit, only to renew it in August. In mid-November, he expanded the list of defendants to include Microsoft, LinkedIn co-founder Reid Hoffman, and former OpenAI board member and Microsoft vice president Di Templeton.