XAI Valued at $40 Billion

XAI, owned by billionaire Elon Musk, announced that it has completed a new funding round, raising its valuation to more than $40 billion, as the company continues to enhance its artificial intelligence products and infrastructure.

The company explained in a statement that it raised $6 billion in a round, within the third stage of financing the emerging company, according to Forbes magazine.

It stated that the proceeds of the funding will be directed to developing products and enhancing infrastructure, referring to the “Groc” model for artificial intelligence, and its supercomputer in Memphis, Tennessee, which it relies on to train artificial intelligence models.

The statement stated that “BlackRock”, “Fidelity” and “Sequoia Capital” were among the investors participating in the funding, and that the company is currently working on developing the “Groc 3” model, which is supposed to be released by the end of this year, according to a post by Elon Musk last June.

The company has now raised $12 billion in Series B and Series C funding this year, with participation from prominent investors such as Morgan Stanley, Kingdom Holding, and Andreessen Horowitz, in addition to chip designer Nvidia and semiconductor company AMD.