Elon Musk’s xAI has raised US$ 6 billion to further develop and advance the company, founded in July last year. The funding round was led by Andreessen Horowitz, Sequoia Capital, and Saudi Arabian Prince Al Waleed bin Talal. xAI will compete with AI projects from Google, Meta, Amazon, Apple, and Microsoft. Since its establishment, xAI created a chatbot called Grok, available for premium users of X, to compete against ChatGPT. Musk is currently suing OpenAI and its founder Sam Altman. xAI will use the money to purchase expensive AI hardware, including the Blackwell B200 AI graphics cards costing US$ 40,000 per piece, and would need about 100,000 chips for the supercomputer controlling Grok. According to earlier Securities and Exchange Commission filings, xAI had initially intended to raise only US$1 billion, but with companies like Microsoft adding US$ 13 billion to the market, prices surged.