Elon Musk’s xAI has closed its Series C funding round of $6-billion with participation from key investors including A16Z, Blackrock, Fidelity Management & Research Company, Kingdom Holdings, Lightspeed, MGX, Morgan Stanley OIA, QIA, Sequoia Capital, Valor Equity Partners and Vy Capital.
Strategic investors Nvidia and AMD also participated and continue to support xAI in rapidly scaling its infrastructure.
Since the announcement of the Series B in May 2024, xAI has made significant technical progress and shipped a some key initiatives including:
- Colossus, xAI has established a decisive hardware advantage with the world’s largest AI supercomputer using an Nvidia full stack reference design with 100 000 Nvidia Hopper GPUs. Compared to typical multi-year industry timeframes, Colossus was fully operational in 122 days and started running workloads just 19 days after the first servers were delivered. Soon, xAI will double the size of Colossus to a combined total of 200 000 Nvidia Hopper GPUs, achieved by using the NVIDIA Spectrum-X Ethernet networking platform.
- Grok 2, xAI’s frontier language model with reasoning capabilities.
- xAI API, which gives developers programmatic access to xAI’s foundation models and is built on a new bespoke tech stack that allows multi-region inference deployments for low-latency access across the world.
- Aurora, xAI’s proprietary autoregressive image generation model for Grok enhances multimodal understanding, editing, and generation capabilities
- Grok on X, leveraging the X platform to understand what’s happening in the world in real time. The team recently added new features enhancing the X experience like web search, citations, and our recent image generator, Aurora
xAI’s most powerful model yet, Grok 3, is currently training and the company is focused on launching innovative new consumer and enterprise products that will leverage the power of Grok, Colossus, and X.
The funds from this financing round will be used to further accelerate its advanced infrastructure, ship products, and accelerate the research and development of future technologies.