X.AI, a competitor to ChatGPT parent OpenAI, disclosed a large round of funding without the need to become a public company
X.AI, the Elon Musk business that competes with ChatGPT parent OpenAI, has raised $6 billion in private funding as the latest example of a big startup taking its time to float an initial public offering.
X.AI said in a filing that it drew in $6 billion from a total of 97 investors.
The funding round took place quickly, with the first sale recorded on Nov. 22, followed by a closing on Thursday.
The funding round marks at least the second big Musk-backed startup that's been able to raise large sums of money while remaining private.
Earlier this week, reports surfaced that Musk's SpaceX business is raising money in private markets at a valuation of $350 billion.
With private-market investors eager to pour money into hot tech startups, it's less likely that companies such as SpaceX, X.AI and others will be in a rush to complete IPOs and trade their shares on the New York Stock Exchange or the Nasdaq.
Large technology companies find themselves avoiding public markets due to high regulatory costs and potential exposure to broad selloffs in equities that have nothing to do with the performance of a specific company.
Meanwhile, X.AI announced earlier this week that it would expand its "Colossus" supercomputer facility in Memphis from plans originally unveiled in June, according to a statement from the Greater Memphis Chamber of Commerce.
X.AI plans to build at least one million graphics processing units in what's been described as the largest capital investment in the history of the region.
Nvdia Corp. (NVDA), Dell Technologies Inc. (DELL) and Super Micro Computer Inc. (SMCI) are also planning an increased presence in Memphis, which is billing itself as the "digital delta."
X.AI disclosed in May that it raised $5 billion from 139 investors, according to a filing.
In December of 2023, the company raised about $135 million.
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