The AI firm said its Series B funding round includes Andreessen Horowitz, Sequoia Capital, Fidelity, and Kingdom Holding company, which is led by Saudi Arabia’s Prince Alwaleed bin Talal Al Saud—as well as Vy Capital and Valor Equity Partners, firms which are both led by long-time investors in Musk’s other companies. The pre-money valuation was US$18 billion, Musk said on X. (The Logic)

Talking point: The company was officially unveiled last year and included two University of Toronto researchers in its founding team. It has been focused on the Grok large-language model, similar to OpenAI’s ChatGPT, which so far has been rolled out as a chatbot on paid X.com accounts. Musk has reportedly pitched investors on xAI’s plans to build a computing cluster four times the size of those owned by competitors like Meta, with the goal of creating a “gigafactory of compute.” That would require billions of dollars in spending to keep up with rivals.