xAI, the artificial intelligence company founded by Elon Musk, has raised a staggering $6 billion in a Series C financing round, according to a recent announcement. This massive influx of capital brings the company's total funding to $12 billion, with its valuation now standing at $45 billion, nearly double its previous valuation.

The funding round saw participation from a slew of high-profile investors, including Andreessen Horowitz, Blackrock, Fidelity, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, Vy Capital, Nvidia, AMD, and others. Notably, Kingdom Holdings, the Saudi conglomerate holding company, invested roughly $400 million in the round, as revealed in a public filing.

xAI's latest funding round is a significant milestone in the company's rapid growth, which has been marked by the development of its flagship generative AI model, Grok. Musk formed xAI last year, and since then, the company has made significant strides in integrating Grok into various applications, including X, the social network formerly known as Twitter.

Grok, which has been described as having a "rebellious streak," has been designed to answer "spicy questions" that other AI systems might shy away from. However, despite its willingness to push boundaries, Grok has been criticized for its own biases and unwillingness to engage in certain political discussions. Musk has defended Grok, calling it "maximally truth-seeking" and less biased than competing models, although evidence suggests that Grok may lean to the left.

xAI is racing to catch up with formidable competitors like OpenAI and Anthropic in the generative AI space. The company launched an API in October, allowing customers to build Grok into third-party apps, platforms, and services. Additionally, xAI has launched a standalone Grok iOS app to a test audience, further expanding its reach.

Musk has been vocal about his concerns regarding the competitive landscape, accusing OpenAI of "actively trying to eliminate competitors" like xAI. He has also argued that OpenAI unfairly benefits from Microsoft's infrastructure and expertise, which he claims amounts to a "de facto merger." However, Musk also believes that X's data gives xAI a significant advantage over its rivals.

xAI has outlined an ambitious vision for its models, which would be trained on data from Musk's various companies, including Tesla and SpaceX. The company is already powering customer support features for SpaceX's Starlink internet service and is reportedly in talks with Tesla to provide R&D in exchange for some of the carmaker's revenue. However, Tesla shareholders have sued Musk over his decision to start xAI, arguing that he has diverted both talent and resources from Tesla to what's essentially a competing venture.

Despite these challenges, xAI's revenue has grown to around $100 million a year, driven by its developer and consumer-facing products. The company plans to raise more money next year and has told investors it will continue to expand its operations. xAI has already grown rapidly, from just a dozen employees in March 2023 to over 100 today, and has moved into OpenAI's old corporate offices in San Francisco's Mission neighborhood.

The AI venture capital landscape is heating up, with megadeals like OpenAI's $6.6 billion raise in October and Anthropic's $4 billion deal with Amazon driving AI venture capital activity to $31.1 billion across over 2,000 deals in Q3 2024, according to PitchBook data. xAI's massive funding round solidifies its position in the generative AI race, and its valuation of $45 billion cements its status as a major player in the industry.

As the AI landscape continues to evolve, xAI's latest funding round serves as a significant milestone in the company's rapid growth and expansion. With its sights set on further innovation and development, xAI is poised to play a major role in shaping the future of artificial intelligence.