xAI Raises $6 Billion in Funding

(Reuters) – Elon Musk's artificial intelligence startup xAI announced on Thursday that it has raised approximately $6 billion in equity financing as it aims to compete with other AI companies.

The funding arrives as xAI plans to expand its supercomputer based in Memphis, Tennessee, to accommodate at least one million graphics processing units.

Musk, who launched xAI last year, filed an expanded lawsuit against OpenAI, the maker of ChatGPT, last month, claiming that OpenAI is attempting to monopolize the generative AI market and undermine competitors.

CNBC reported in the previous month that xAI's fundraising aimed for $6 billion, with a post-raise valuation expected to exceed $50 billion.

In October, OpenAI concluded a funding round of $6.6 billion, reaching a valuation of $157 billion.