one year on
xAI closes $6B Series C at over $40B valuation, plans to double Colossus in size
Elon Musk’s AI startup raises $6 billion from Blackrock, A16Z, Kingdom Holding, Fidelity and Sequoia Capital, bringing total 2024 funding to $12 billion as it races to scale its Memphis supercomputer and train Grok 3.
Elon Musk’s xAI announced Monday it has closed a $6 billion Series C funding round, pushing the company’s valuation to at least $40 billion. The round includes participation from Blackrock, A16Z, Kingdom Holding, Fidelity and Sequoia Capital — the latter three of which were also backers of xAI’s $6 billion Series B in May.
The company said the capital will go toward products and infrastructure, notably its Grok AI model and the Colossus supercomputer in Memphis, Tennessee. Colossus currently houses 100,000 Nvidia GPUs, and xAI plans to double that capacity as it trains Grok 3, its next-generation model that Musk has said is on track for release by the end of the year.
xAI has now raised $12 billion this year.
Grok 2 is already available to users on X, but xAI has yet to launch a standalone app.
The record
Lauded the speed of xAI’s Colossus build and said at the DealBook Summit he assumes xAI to become 'a really serious competitor' to OpenAI.
One year later — open only if you can handle spoilers
xAI’s Colossus expansion hit 200,000 GPUs by mid-2025, but Grok 3 missed its end-of-2024 deadline and was released in February 2025. The company’s valuation later dipped to around $30B in private market trades as competition from OpenAI and Anthropic intensified.