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Investments and investor services

Elon Musk's xAI raises $6bn to develop ChatGPT competitor Grok

Elon Musk’s artificial intelligence company, xAI, has raised $6 billion, according to a filing with the US Securities and Exchange Commission.

This brings its total funding to $12 billion. Key investors include Andreessen Horowitz, BlackRock, and Sequoia Capital. Only backers from xAI’s previous round were eligible to participate, with some linked to Musk’s acquisition of Twitter reportedly granted access to 25% of shares.

Founded last year, xAI has developed the generative AI model Grok, which is used on X (formerly Twitter) for chatbot functions and image generation.

Grok, positioned as “maximally truth-seeking”, competes with models from OpenAI and Anthropic.

The company launched an API and standalone app in 2024.

It has faced legal disputes and criticism over its data use and ties to Musk’s other companies, including Tesla.

Its Memphis data centre, housing 100,000 Nvidia GPUs, is central to training future models.

xAI plans further fundraising in 2025 as the AI funding race intensifies.

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