Skip to content Skip to Search
Skip navigation

Prince Alwaleed part of Elon Musk’s $6bn AI funding round

Elon Musk launched xAI last year. It will use the new funding to bring products to market and research technologies Reuters
Elon Musk launched xAI last year. It will use the new funding to bring products to market and research technologies
  • xAI secures $6bn funding
  • Led by Kingdom Holding
  • Prince Alwaleed invested $1.9bn

Elon Musk’s artificial intelligence startup xAI has secured $6 billion in a series B funding round led by investors including Saudi billionaire Prince Alwaleed Bin Talal and his investment firm Kingdom Holding Company.

The round, which also included investments from Dubai-based Vy Capital and US companies Andreessen Horowitz and Sequoia Capital, will assist the commercial launch of xAI’s products, the company said in a blog post on Monday.

Kingdom Holding Company did not respond when contacted by AGBI.

The newly raised funds “will be used to take xAI’s first products to market, build advanced infrastructure, and accelerate the research and development of future technologies,” the post added.

xAI is currently valued at $24 billion, up from its pre-funding valuation of $18 billion. 

Musk, the owner of social media platform X (formerly Twitter), has hinted at forthcoming announcements and more updates in the coming weeks.

Kingdom Holding, along with Prince Alwaleed, already has substantial investments in X. 

Prince Alwaleed made it known through a Securities and Exchange Commission filing that he had invested $1.9 billion. This made him the second-largest shareholder in the social media company after Musk.

Kingdom Holding’s engagement with the social media platform dates back to an initial share purchase in 2011, with a significant increase in holdings by October 2015.

Musk launched xAI in July last year and in November released its Grok-1 generative AI platform.

Musk is also planning to build an xAI supercomputer according to American publication The Information, which he has been calling a “gigafactory of compute”.

Latest articles

More than 24 million people visited the World Expo event at Expo City Dubai between October 2021 and March 2022

Construction begins at Expo City Dubai site

Construction has begun on the first residential properties at Expo City Dubai, part of a mixed-use master plan to repurpose the legacy site after the world fair came to a close two years ago. Master developer Expo City Dubai announced last week that it has awarded four key contracts for its Mangrove Residences. UAE-based USF […]

Saudi housing costs rose nearly 9% year on year in May

Saudi housing costs rise but inflation remains steady

Housing costs in Saudi Arabia rose nearly 9 percent year on year in May, but it was not enough to push overall inflation in the kingdom over 2 percent. The latest data from the General Authority for Statistics showed the annual inflation rate in Saudi Arabia was 1.6 percent in May, having remained at this […]

OTB Group has a presence in Dubai with its Maison Margiela store in the Dubai Mall

Chalhoub Group in venture with Italian luxury brand

Luxury distributor Chalhoub Group has entered into a joint venture with Italian fashion conglomerate OTB Group to expand the brand’s footprint in the Gulf. OTB (which stands for Only The Brave) owns the Diesel, Jil Sander, Maison Margiela, Marni and Viktor&Rolf brands, the Staff International and Brave Kid companies, and holds a stake in the […]

Arid conditions brought about by the drought in Morocco are affecting the cost of sheep

Drought pushes up sheep price for Eid in Morocco

The price for a sheep in Morocco for the annual sacrifice at Eid al-Adha has increased on average at 10 times the 2.2 percent rate of inflation. A medium-sized female sheep costs MAD4000 ($400) as opposed to MAD3000 last year. This puts it out of range for many families in the country where a high […]