In a major deal in the artificial intelligence field, xAI, owned by billionaire Elon Musk, raised a $6 billion in a new funding round. This move strengthens the company’s resources and enhances its ability to compete strongly with all competitors, including Google, Microsoft, and OpenAI.
xAI tweeted that Prince Alwaleed bin Talal and Kingdom Holding Company were among the supporters who invested in the Series B funding round, along with other companies like Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, and Fidelity.
Confirming xAI’s expansion plans, a report published in April indicated that the company was seeking to raise $6 billion, with an estimated valuation of around $18 billion at that time.
Elon Musk, the famous entrepreneur, is considered one of the pioneers in the field of artificial intelligence. He is known for his company Tesla and self-driving technologies, and he is also the founder of OpenAI, in which he has invested millions of dollars.
In November, xAI released the Grok 1.0 model as a competitor to ChatGPT, and then the company provided access to +Premium users via X for this model. In April, xAI introduced the new Grok 1.5 model and enabled +Premium users via X to use the robot.
xAI plans to use the new funding to launch more products in the market and develop future technologies. The company is also expected to seek partnerships to offer Grok to users outside the X platform.
Despite xAI’s aspirations to develop sincere artificial intelligence systems, the news summary feature of the Grok model via X causing hallucination and generating misleading information presents a challenge that the company will have to deal with in the future.
