Saudi Arabia’s Kingdom Holding and Qatar’s QIA Back Elon Musk’s xAI in $6 Billion Funding Round
Elon Musk’s artificial intelligence company, xAI, has successfully raised $6 billion in a series C funding round, attracting investments from major entities such as Saudi Arabia’s Kingdom Holding, Qatar Investment Authority (QIA), and Oman Investment Authority (OIA). This follows its $6 billion series B round earlier in May, which also saw participation from Kingdom Holding, led by Saudi billionaire Prince Alwaleed bin Talal.
Other contributors to the latest funding round include Valor Equity Partners, Vy Capital, Sequoia Capital, Fidelity Management & Research Company, A16Z, BlackRock, Lightspeed, MGX, and Morgan Stanley. Tech giants Nvidia and AMD have also invested, supporting the rapid scaling of xAI’s advanced AI infrastructure.
The funds will be directed toward accelerating research, scaling infrastructure, and developing groundbreaking technologies like the Grok generative AI chatbot. Positioned as a rival to ChatGPT and Google’s Gemini, Grok aims to serve billions of users and contribute to understanding “the true nature of the universe.”
Launched in July 2023, xAI has achieved significant milestones, including creating the Colossus supercomputer, rolling out Grok 2, integrating Grok into X (formerly Twitter), and introducing an xAI API. Upcoming advancements include Grok 3, which promises a “major leap forward,” according to Musk.
Oman’s OIA recently confirmed its stake in xAI, reflecting its commitment to investing in advanced technologies across various sectors.
