Elon Musk’s AI company, xAI, has raised $6 billion, according to a filing with the U.S. Securities and Exchange Commission (SEC). This funding brings xAI’s total raised to $12 billion, following an earlier $6 billion round this year. Investors like Andreessen Horowitz, Blackrock, Fidelity, Sequoia Capital, Nvidia, and AMD have backed the company, fueling its rapid growth.
xAI launched its AI model, Grok, last year. Grok powers many features on X (formerly Twitter). It is known for answering “spicy questions” that other AI systems avoid. Musk has called Grok “truth-seeking” and less “politically correct” than competitors like OpenAI’s ChatGPT, though it has faced criticism for leaning left on some issues.
With the new funds, xAI is speeding up its growth. The company has launched an API, allowing businesses to integrate Grok into their apps. It also introduced a Grok iOS app for testing. Musk plans to integrate AI into Tesla and SpaceX, improving customer support and autonomous driving.
However, Musk’s decision to focus on xAI has faced backlash. Some Tesla shareholders are suing him, arguing that xAI competes with Tesla’s interests. Critics also claim that xAI’s data center expansion in Memphis could strain the power grid and worsen air quality.
Despite this, xAI continues to grow. The company now has over 100 employees, up from just 12 in March 2023. It recently moved into OpenAI’s former offices in San Francisco. As xAI competes with OpenAI and Anthropic, Musk’s company is set to play a major role in the future of AI technology.