Elon Musk’s xAI has secured$ 6 billion in Series B funding from investors, including Kingdom Holding of Saudi Arabia, in a major move to strengthen its position in the AI sector.
According to Business Insider, the AI company, which is just a year older, has attracted purchases from well-known venture capital firms like Andreessen Horowitz and Sequoia Capital, as well as Kingdom Holding in Saudi Arabia. This funding square represents a significant phase for xAI in its quest to contend with OpenAI, the highly regarded ChatGPT creator, Sam Altman.
Elon Musk took to X/Twitter to share the news, stating,” There will be more to reveal in the coming month”. In a later article, Musk revealed that xAI’s post- cash valuation stood at an remarkable$ 18 billion, highlighting the company’s ability and investor confidence in its potential prospects.
Pre- cash pricing was$ 18B
— Elon Musk ( @elonmusk ) May 27, 2024
Following Musk’s earlier protestations of information from Bloomberg and the Financial Times regarding the agency’s mentoring to buyers, this statement is the first official assurance of xAI’s charity work. Musk’s desire to establish xAI as a fearsome solution to OpenAI, a business he co-founded with Altman before leaving its table in 2018, will depend on the large flood of capital.
OpenAI boss Sam Altman ( Kevin Dietsch/Getty )
With its ground-breaking ChatGPT, OpenAI, valued at$ 80 billion or more, has been at the forefront of AI development. But, Musk has expressed sorrow in the way OpenAI has taken, especially its association with Microsoft, which he believes contradicts the company’s initial volunteer goal.
In February, Musk filed a complaint against OpenAI, accusing the business of violating its volunteer standing by partnering with Microsoft. ” OpenA I was created as an open source ( which is why I named it’ Open ‘ AI), non- profit company to function as a counterweight to Google, but now it has become a sealed source, maximum- profit company successfully controlled by Microsoft”, Musk wrote on X/Twitter.
OpenAI was founded as a non-profit organization that operated as an open source, maximum-profit organization in order to compete with Google, which I gave the name” Open” AI.” However, it has since grown to a closed source, maximum-profit organization that is effectively controlled by Microsoft.
Not at all what I intended.
— Elon Musk ( @elonmusk ) February 17, 2023
Read more here at Business Insider.
Lucas Nolan is a reporter for Breitbart News, covering issues involving online censorship and free speech.
