xAI raises $6 billion in a Series C funding round

Elon Musk's generative AI startup xAI has raised $6 billion in a Series C funding round from investors including A16Z, Blackrock, Fidelity Management & Research Company, Kingdom Holdings, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners and Vy Capital, amongst others.

"The funds from this financing round will be used to further accelerate our advanced infrastructure, ship groundbreaking products that will be used by billions of people, and accelerate the research and development of future technologies enabling the company’s mission to understand the true nature of the universe," xAI said in its funding announcement.

The company pitches itself as an alternative to OpenAI, which Musk is currently suing for deviating from its non-profit roots. Before he broke away from OpenAI, Musk had pitched making the company a division of for-profit Tesla.