xAI Announces Funding from Andreessen, Saudi Prince Bin Talal

Elon Musk’s xAI has completed a $6 billion fundraising round from investors including Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, and Saudi Prince Alwaleed Bin Talal, the company announced over the weekend.

The Information earlier reported that xAI was raising $6 billion at an $18 billion valuation not including the investment to develop its chatbot Grok in competition with OpenAI.

These investors have been long-time supporters of Musk’s endeavors. Valor is a Tesla and SpaceX investor, while Vy Capital backed Musk’s Twitter purchase. The Saudi Arabian billionaire prince, Bin Talal, first backed Twitter in 2015. In 2022, he publicly rejected Musk’s bid to take Twitter private but eventually acquiesced and rolled his $1.9 billion stake into the privatized Twitter.