Sequoia Capital Backed Musk XAI In Series B Funding: Reaches $24 Billion Valuation

Tesla CEO Elon Musk has announced a Series B funding of his startup xAI. Investors include Andreessen Horowitz, Valor Equity Partners, etc.

Among the investors, Sequoia Capital backed Musk xAI, and the company raised $6 billion in a new funding round. With the funds, Musk’s xAI has reached a valuation of between $18 billion-$24 billion.

Elon gave an update about his startup with a post on his X account. Likewise, xAI revealed the news in a blog post.

Giants Investor Sequoia Capital backed Musk xAI

In April 2024, xAI closed in on a $6 Billion fundraising, and the company aimed for a huge valuation. On May 26, 2024, xAI raised $6 billion in Series B funding, and Musk reported that the pre-money valuation was $18 billion.

Sequoia Capital Backed Musk XAI. Image Credit: X (formerly Twitter).

On May 26, 2024, xAI, on their blog post, announced a Series B funding. Other key investors include Valor Equity Partners, Vy Capital, Fidelity Management and Research Company, Prince Alwaleed Bin Talal, and Kingdom Holding.

XAI To Compete With Modern AI Pioneers

Sequoia Capital backed Musk xAI is aggressively working on its newest Grok models to compete with rivals like OpenAI, Microsoft, and Google.

Previously, in 2015, Elon was the founding co-chairman of OpenAI, where Sam Altman currently serves as its CEO. However, the SpaceX founder left the board in 2018.

Sequoia Capital Backed Musk XAI. Image Credit: Wikimedia Commons.

Musk founded xAI in March 2023 and hired some of Silicon Valley’s best minds, including Google’s Deepmind units. Elon officially announced the company on July 12, 2023.

With an outstanding RealWorldQA benchmark, xAI’s Grok-1, Grok-1.5, and Grok-1.5v have improved over the past few months.

In March 2024, xAI open-sourced the Grok model, and further updates will be announced soon.

XAI Hoping To Build Its Own Supercomputer By 2025

After the pre-money valuation reached $18billion-$24 billion, Musk posted on his X that more announcements are coming soon.

Further, xAI, on its blog, mentioned that the $6 billion funds will be used to make the products available to the market. Likewise, the capital will help create advanced infrastructure. Similarly, the funding will accelerate the R&D of future innovative technologies.

Musk has also announced that xAI has plans to build a supercomputer by 2025. The project will be four times bigger than the current Graphics Processing Units (GPUs) clusters, and it will connect Nvidia’s flagship H100 GPUs.