According to a filing with the U.S. Securities and Exchange Commission, Elon Musk’s artificial intelligence company xAI has raised an astounding $6 billion in funding. Each of the 97 investors in this investment round contributed at least $77,593. Although the names of these investors were not revealed, sources claim that Sequoia Capital, Andreessen Horowitz, Qatar Investment Authority, and Valour Equity Partners were probably involved.
This amounts to xAI’s total funding of $12 billion, after the $6 billion that was raised earlier this year, doubling its worth.
Chasing Leaders in the AI Race
xAI is trying to compete with other companies like OpenAI and Anthropic. Moreover, xAI plans to release another app by December, with similar features to OpenAI’s ChatGPT app.
Strategic Planning
xAI has a unique strategy which involves training its AI models using data from Musk’s other companies, such as Tesla and SpaceX. Apparently, the company is also in talks with Tesla to provide AI research and development in exchange for a portion of Tesla’s revenue.
Read more; Elon Musk to Start His Own AI Gaming Studio
Disagreement among Tesla Shareholders
However, not everyone agrees with Musk’s vision for xAI. Some Tesla shareholders have voiced their concerns and even filed lawsuits against Musk. They claim that he is taking away critical resources and talent from Tesla to xAI, which they view as competition.
Revenue and Market Competition
Despite these controversies, xAI has achieved annual revenues of around $100 million. However, it still trails behind competitors like Anthropic, which is expected to earn $1 billion in 2024, and OpenAI, aiming for $4 billion by the end of the year.
Stay tuned to Brandsynario for the latest news and updates.