In an increasing AI competition, investors were placing large bets on challengers to OpenAI and other industry leaders, and Elon Musk's AI startup xAI was no exception, raising $6 billion in series B funding and attaining a post-money valuation of $24 billion, according to Reuters.
Investors backing the investment round included Sequoia Capital and Andreessen Horowitz, the company announced in a blog post on Sunday.
In an X post, Musk stated that the company's pre-money valuation was $18 billion.
According to xAI, the funds will be utilized to construct cutting-edge infrastructure, launch the company's initial products, and quicken the creation of new technologies.
In reaction to the investment announcement, Musk stated in another X post, "There will be more to announce in the coming weeks."
Leading the intense competition for generative AI supremacy are companies like Alphabet and Microsoft-backed OpenAI, which are propelling large investments and innovation in the rapidly evolving field.
