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X raises $6 billion for its AI initiatives

xAI, the team behind X’s Grok AI chatbot, along with other parts of Musk’s businesses , has received nearly $6 billion in extra funding. Investors include Lightspeed Venture Partners, Andreessen Horowitz, Sequoia Capital, and Tribe Capital.

In the latest funding round, xAI’s is now valued at around $18 billion.

According to the The Financial Times: “The funding deal comes as Musk seeks to secure the financial firepower to catch-up with market leaders OpenAI, Anthropic and Google, all of which have released more powerful generative AI models than xAI. His pitch to investors is that xAI can gain ground thanks to its connection to the other companies he leads, which could provide technology, data and early revenue as customers of the start-up.”

A significant injection of funding into xAI, particularly for its Grok AI chatbot, suggests a growing interest in the capabilities of AI-driven solutions.

For marketing and advertising on social media platforms, this development could have several implications such as innovation in ad targeting, improved customer engagement, potential for disruption in the social media advertising landscape, and more.

Increased investment in xAI could spur competition among AI-driven marketing and advertising platforms.

This competition may drive innovation and lead to the introduction of new features and capabilities that improve the effectiveness of advertising on social media.

Mark Zuckerberg, CEO of Meta, announced the company plans to invest an extra $5 billion into AI development in 2024, supplementing the $35 billion already allocated for AI and VR projects.