Elon Musk’s xAI is now backed by popular investor Cathie Wood, whose firm ARK Investment Management has purchased a stake in the AI startup.
The stake represents about 2% of ARK’s Venture Fund, ARK Chief Futurist Brett Winton told Bloomberg.
“xAI’s access to X’s distribution and real-time data differentiates it from any other AI play, particularly when combined with Elon Musk’s maniacal focus on velocity,” Winton told the publication.
The fund also invests in ChatGPT creator OpenAI and others in the AI space, including Figure AI and Shield AI.
This comes after xAI on Monday announced it has raised $6 billion in series B funding from investors including Andreessen Horowitz and Sequoia Capital, bringing its post-money valuation to $24 billion.
xAI is developing a chatbot called Grok to rival Microsoft-backed OpenAI’s ChatGPT and Alphabet’s Gemini.