Musk’s xAI raises $15 billion in latest funding round

Elon Musk’s artificial intelligence company xAI has raised $15 billion from investors, sources familiar with the matter told CNBC’s David Faber.

The funding adds another $5 billion to the $10 billion round CNBC reported on in September, which valued the startup at $200 billion. Sources told CNBC that a lot of the money will fund graphic processing units that underpin large language models.

Artificial intelligence startups have reached sky high valuations in recent months as they raise massive amounts of capital to power seemingly endless demand for foundational models.

In September, AI startup Anthropic closed a $13 billion funding round that roughly tripled its valuation from March. Sam Altman’s OpenAI in October closed a $6.6 billion share sale at a $500 billion valuation. Last month, Reuters reported that the ChatGPT maker was prepping for an IPO that could value it at $1 trillion.

Elon Musk’s artificial intelligence company xAI has raised $15 billion from investors, sources familiar with the matter told CNBC’s David Faber.

The funding adds another $5 billion to the $10 billion round CNBC reported on in September, which valued the startup at $200 billion. Sources told CNBC that a lot of the money will fund graphic processing units that underpin large language models.

Artificial intelligence startups have reached sky high valuations in recent months as they raise massive amounts of capital to power seemingly endless demand for foundational models.

In September, AI startup Anthropic closed a $13 billion funding round that roughly tripled its valuation from March. Sam Altman’s OpenAI in October closed a $6.6 billion share sale at a $500 billion valuation. Last month, Reuters reported that the ChatGPT maker was prepping for an IPO that could value it at $1 trillion.