In This Article:
Elon Musk has a lot going on as 2024 winds to a close.
The CEO of both Tesla (TSLA) and SpaceX is finishing a busy year that brought plenty of updates from both companies.
💰💸 Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter 💰💸
Now, Musk is gearing up to begin his tenure as co-head of the Department of Government Efficiency (DOGE), which he will operate with Vivek Ramaswamy.
Musk may be preparing to take on Capitol Hill, but that doesn’t mean his companies are slowing down. In fact, one of his ventures recently completed a new funding round and has raised a significant amount of money, most of which came from some of the tech sector’s most prominent names.
Related: Veteran fund manager issues dire S&P 500 warning for 2025
Musk has successfully raised so much money for one of his newest projects, suggesting that Silicon Valley still believes in him, even as he prepares to divide his time between the public and private sectors.
Musk’s new company has a long list of backers
With Tesla and SpaceX making so many headlines, it can be easy to overlook Musk’s other companies. But recently, some investors have been focused on xAI, his artificial intelligence (AI) venture that appears to be garnering significant momentum.
Related: A year in review: the most important tech news stories of 2024
Christmas seems to have come early for Musk this year. On December 23, xAI published a blog post announcing that it had closed out a Series C funding round and managed to raise $6 billion in the process, setting it up nicely to continue expanding in 2025.
A major cash influx is always great news for a startup. But even more significant is the fact that xAI has received investments from many prominent names, spanning both Wall Street and Silicon Valley, both fellow tech companies and prominent venture capital (VC) firms.
Among the firms that participated in the xAI Series C financing round were Morgan Stanley (MS) , BlackRock (BLK) and Fidelity Management & Research Company, and VC firms Andreessen Horowitz and Sequoia Capital.
AI chipmakers Nvidia (NVDA) and Advanced Micro Devices (AMD) also participated, as did Saudi conglomerate Kingdom Holdings, which publicly disclosed a $400 million investment. Musk posted on X, making it clear he welcomed the Nvidia investment.
As xAI notes in the announcement, “The funds from this financing round will be used to further accelerate our advanced infrastructure, ship groundbreaking products that will be used by billions of people, and accelerate the research and development of future technologies enabling the company’s mission to understand the true nature of the universe.”