Elon Musk’s xAI Hits $50B Valuation After $5B Raise from Top Investors

Elon Musk’s AI startup xAI has raised $5 billion and is valued at $50 billion, with notable investors including Qatar Investment Authority and Sequoia Capital.

According to reports, Elon Musk’s AI startup xAI is now worth $50 billion. This comes after the company raised $5 billion in funding.

According to the Wall Street Journal, xAI has now raised $11 billion this year. Notable investors such as the Qatar Investment Authority, Andreessen Horowitz, Valor Equity Partners, and Sequoia Capital have all contributed to this effort.

The company was worth about $24 billion before the $6 billion funding round in the spring, so the $50 billion valuation is twice as much. According to reports, xAI intends to purchase an additional 100,000 Nvidia chips to enhance the training of its AI models.

xAI is still growing, and its new, high valuation of $50 billion is much higher than the $44 billion Musk paid for the old Twitter social platform in October 2022. The platform has changed a lot to match the CEO’s vision, but Fidelity only gave it a $9.4 billion valuation in September.

The investment firm’s analysis showed that its $19.6 million in X was only 79% of what it was worth. OpenAI is the leader in artificial intelligence, and Musk started xAI as a way to compete with it. In 2015 Musk teamed up with Sam Altman to co-found OpenAI. After four years of separation, they have been embroiled in a bitter, long-lasting feud that has resulted in numerous public fights and lawsuits.

Musk Criticizes OpenAI’s Shift from Original Mission

Musk has been very critical of OpenAI’s move away from its original mission to help people, calling Altman and the company “illegally” acting.  As part of Musk’s claim that the company is breaking antitrust laws, a series of emails were made public this week that show how the ChatGPT maker was in its early stages.

The lawsuit added Microsoft as a defendant last Thursday (Nov. 21). The lawsuit accuses both companies of seeking a monopoly on AI and acting in a manner that seriously harms competition.