The startup xAI of Elon Musk has created a buzz yet again after raising an astounding $6 billion from investors in its recent funding round. The total worth of the company now stands close to about $50 billion, making it one of the most valuable startups in the world. The fundraising round saw big investors like NVIDIA, AMD, and investment funds from Saudi Arabia and Qatar.
While the value and funding amounts for xAI are impressive, it is not the only one by a long stretch. OpenAI is pegged at nearly $157 billion today. Critics have said all these companies are burning loads of cash but could never make a strategy or path to profitability. But, Musk is not deterred. He said in a statement that xAI would use these funds to create a groundbreaking product for billions of users and advance research.
Also Read: Pakistan Set to Boost Internet Speeds with New Undersea Cable Connection
Musk has often expressed warnings about our civilization’s damage through AI. Still, he is after a bigger proportion of investment into the segment. He founded xAI in July 2023, after he signed an open letter with several parties calling for a halt to the construction of highly capable AI models.
Surprisingly, Musk has also taken legal steps to prevent OpenAI, which he helped to found in 2015 as a non-profit before walking out in 2018, from operating as a for-profit entity. He argues that it breaches legally binding commitments.