Elon’s xAI Scores $6 Billion in Funding For His Revenge Tour

Forget Trump tweets, Teslas, DOGE (the government one), and Mars colonies… Elon’s new fixation is artificial intelligence. Daddy Warbucks Musk’s xAI just brought in $6 billion from some of the biggest names in venture capital, sending its valuation to $45 billion. Naturally, he announced it on X (formerly known as Twitter) with a Jaws reference: “We’re gonna need a bigger compute!” Because why just announce something when you can meme it instead?

But let’s not kid ourselves… this isn’t just about AI. It’s also about Musk’s favorite hobby: proving he’s better than his ex. And no, I’m not talking about Grimes or Amber Heard. I’m talking about OpenAI.

As we all know, Musk co-founded OpenAI in 2015, only to leave in 2018 after a falling out over its direction. Well, if you do the math… xAI has a $12 billion war chest, which is cute compared to OpenAI’s $17.9 billion. But hey, who’s counting? (Everyone. Everyone is counting.)

Elon’s beef with OpenAI is no secret. He’s accused them (and Microsoft, their sugar daddy) of monopolizing the AI industry and blocking competitors like xAI. 

He even filed a lawsuit claiming they’ve been “extracting promises from investors not to fund rivals.” OpenAI fired back, calling Musk’s allegations baseless and basically labeling him the jealous ex who can’t let go.

But Elon’s throwing even bigger haymakers now. He’s leveraging his other companies to give xAI a leg up. Grok, xAI’s flagship chatbot, is already helping SpaceX’s Starlink customers and could soon play a role in Tesla’s self-driving tech. If Elon has his way, xAI will be woven into everything from your car to your social media feed, turning his empire into one giant interconnected Musk-o-verse.

Speaking of Grok, it’s not your typical AI chatbot. Think of it as ChatGPT’s rebellious younger sibling… the one who listens to punk rock and answers your awkward questions without sounding like Kamala Harris during a debate. Want it to cuss? Sure thing. Need it to summarize news or generate images? Done. Grok even powers features on X, making Musk’s vision for a “maximally truth-seeking” AI feel… uniquely chaotic.

Now, with $6 billion more in the war chest, xAI is catching up to Altman. The money will fuel Grok 3’s development and expand its Memphis data center, which is already rocking 100,000 Nvidia GPUs. By next year, they plan to double that number. Why? Because apparently, world domination requires a lot of processing power.

Elon Musk’s new AI project just got a cash infusion from some big names: Sequoia Capital, BlackRock, and Saudi Arabia’s Kingdom Holdings, which dropped $400 million. 

But here’s the funny part… Musk is suing OpenAI for being too controlling, all while teaming up with a super-exclusive group of investors. And some of them? They supposedly got in on the deal as a thank-you for helping him buy Twitter (now X). Talk about irony.

Still, the timing couldn’t be better. The AI world is in a full-blown arms race (reminiscent of the space race in the 50s). OpenAI raised $6.6 billion in October, Anthropic was awarded $4 billion from Amazon, and Q3 alone saw $31 billion poured into AI startups. Everyone wants a piece of the pie, and Elon is determined to bake the biggest one.

At its core, let’s just call it what it is… this isn’t about money… it’s about Musk’s relentless need to outdo OpenAI and its CEO, Sam Altman. Whether it’s lawsuits, cutting-edge tech, or rebellious chatbots, Musk seems hypersonic laser-focused on proving he’s still the ultimate disrupter in the room.

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Stock.News has positions in Tesla, Nvidia, and Amazon mentioned in article.