Elon Musk’s artificial intelligence startup xAI has raised another $6 billion from investors. intensifies competition with OpenAI led by Sam Altmanaccording to a regulatory filing.
XAI – which created the sarcastic chatbot “Grok” available on Musk’s social media site SEC Filing revealed Thursday. The minimum investment in exchange for equity was $77,593.
The filing did not disclose any individual investor names or reveal the size of other investments made in the round.
Last month, CNBC reported that the round included $5 billion from Middle Eastern sovereign wealth funds and $1 billion from other investors – and bringing xAI’s valuation to $50 billion.
The money should help Musk’s AI startup boost its access to computing power.
XAI is expanding its supercomputer facilities in Memphis, Tennessee, to house at least one million graphics processing units (GPUs), local officials announced earlier this week. GPUs are required to train xAI models.
Even with its latest fundraising, xAI is still much smaller than OpenAI, which took a sizable lead in the AI race with the release of ChatGPT.
In October, OpenAI closed a $6.6 billion fundraising round that valued the company at $157 billion. Altman is also leading an effort to restructure OpenAI as a for-profit company — while relegating the nonprofit entity that has run the company since its founding in 2015 to a less prominent role.
As The Post reported earlier this weekMusk – who co-founded OpenAI but later fell out with Altman – filed for an injunction to prevent the company from becoming a for-profit business.
Musk, who filed a major lawsuit against Altman and OpenAI earlier this year, claimed the company violated antitrust law through its collaboration with Microsoft, which poured billions into his operations as an investor key.
“Plaintiffs and the public need a break,” Musk’s injunction request states. “OpenAI’s move from a nonprofit to a for-profit giant is fraught with inherent anticompetitive practices, blatant violations of its charitable mission, and widespread self-dealing. »
“It cannot behave in the marketplace like a Frankenstein, assembled from whatever corporate forms serve the pecuniary interests of Microsoft and Altman at any given time,” the filing adds.
With post wires