xAI to Raise $15 Billion at a $230 Billion Valuation

xAI is an artificial intelligence company with the stated goal of understanding the true nature of the universe. The company's work centers on creating advanced AI systems, most notably their conversational chatbot called Grok, which is designed to be humorous, a little rebellious, and capable of accessing real-time information. xAI aims to develop Artificial General Intelligence that is maximally beneficial to humanity, differentiating its approach by focusing on seeking truth and building AI that attempts to reason from first principles.

xAI is reportedly in talks to raise $15 billion in fresh equity at a valuation of $230 billion. This massive influx of capital is expected to fund the expansion of the company's compute infrastructure—specifically its "Colossus" supercomputer cluster in Memphis—to accelerate the training of its next-generation models.

xAI, headquartered in Burlingame, California, United States, was founded in 2023 by Elon Musk, Christian Szegedy, Greg Yang, Igor Babuschkin, Kyle Kosic, Manuel Kroiss, Toby Pohlen, and Yuhuai Wu. In 2024, the company joined the unicorn club. This rapid ascent establishes xAI as a formidable competitor to industry heavyweights in the global race for Artificial General Intelligence.