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Prince Alwaleed bin Talal is backing Musk’s AI startup: xAI — a California-based artificial intelligence startup owned by tech bn’aire Elon Musk — recently closed a USD 6 bn series B funding round that saw the participation of several key investors, including Prince Alwaleed bin Talal and his investment vehicle Kingdom Holding, according to a blog post.
Also investing in the round: Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, and Fidelity Management and Research Company, among others. The size of each investor’s contribution was not disclosed.
What we know: The funding will help xAI launch its first AI-powered products, optimize infrastructure, and fast-track its research and development efforts, the startup said in the statement. The round brings the startup’s valuation at USD 24 bn, up from a pre-funding valuation of USD 18 bn, Musk said in a post on X. “There will be more to announce in the coming weeks,” Musk said in a separate post.
Prince Alwaleed + Musk are more than acquainted: Prince Alwaleed, together with the Kingdom Holding became the second largest shareholder in X (previously known as Twitter at the time) in October 2022 after Musk took the social media platform private. Prince Alwaleed and KHC collectively own a 4% stake in X.
About xAI: Founded in 2023 by Musk, xAI is looking to build advanced AI systems, “that are truthful, competent, and maximally beneficial for all of humanity,” with the goal of understanding “the true nature of the universe,” the statement read.
IN CONTEXT- Plenty of appetite for AI: The Kingdom is cooking up a world-scale AI play that could see the new technology contribute as much as USD 135 bn to the local economy by 2030, according to a recent report from PwC. Additionally, the Public Investment Fund is looking to set up a USD 40 bn AI-focused fund that would make it the world’s largest investor in artificial intelligence.
