Elon Musk’s AI firm, xAI, has secured $6 billion in new funding from investors, including Sequoia Capital, Andreessen Horowitz, and Saudi Prince Alwaleed Bin Talal, raising its valuation to $24 billion.

The funds will be used to launch its first products, build advanced infrastructure, and accelerate R&D.

Initially valued at $18 billion, xAI’s latest funding positions it as a competitor to OpenAI, the creator of ChatGPT.

Musk, who founded xAI in July last year, previously co-founded OpenAI but left over strategic differences, CNN reported.

xAI is developing an AI-powered chatbot named “Grok” for users of X (formerly Twitter), which Musk also owns.

The company has released improved versions of Grok and is hiring engineers and researchers in Palo Alto, San Francisco, and London. More updates are expected soon, according to Musk.

Written by B.C. Begley