Elon Musk’s AI startup, xAI, raised $6 billion, increasing its worth to nearly $40 billion.

In its most recent round of fundraising, billionaire tech tycoon Elon Musk’s venture xAI said that it had raised $6 billion from investors. The company is facing fierce competition in the artificial intelligence sector.

US venture capitalists, chipmakers NVIDIA and AMD, and investment groups from Saudi Arabia and Qatar, among others, have backed the company, whose main offering is the Grok chatbot.

Despite Musk’s constant warnings that AI is a threat to human civilization, he is actively working to increase investment in the field, and in May, xAI raised $6 billion.

The firm is already among the most valuable startups in the world, but it is still far smaller than its main rival, OpenAI, which is valued at an estimated $157 billion.

Critics have noted that despite the exorbitant projections, AI companies are still losing money and lack a clear route to profitability.

In its Monday announcement of the investment, xAI stated that it will “ship groundbreaking products that will be used by billions of people” with the money.

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Additionally, it would “sped up the research and development of future technologies enabling the company’s mission to unravel the universe’s true nature.”

Musk stated on his X account that “a lot of compute is needed” to power AI products.

He started the business in July 2023, not long after he wrote an open letter advocating for a halt to the creation of potent AI models.

Musk is currently suing OpenAI, the firm that created ChatGPT. He co-founded the non-profit in 2015 before departing in 2018, claiming that its transition to a for-profit business violates legally binding agreements.

–Deeprows Tech.