xAI
Location
California
Founded
2023
Invested
2024
Category
AI
xAI combines world-class AI research with unparalleled reach by integrating its advanced models directly into X’s social media platform. This strategic synergy, reinforced by the acquisition of X—positions xAI to scale both data access and distribution, driving superior model training, engagement, and monetization across a massive global user base.
xAI was founded in 2023 by Elon Musk to build next-generation AI systems centered around its flagship Grok chatbot and groundbreaking compute architecture. Headquartered in Palo Alto, xAI rapidly developed Colossus, one of the world’s largest GPU supercomputers in Memphis, drawing on 200,000 GPUs and planning a 1-million GPU expansion. Grok has been released across platforms—including X and standalone apps—offering multimodal reasoning, image understanding, and full internet search integration.
In March 2025, xAI acquired Musk’s social platform X (formerly Twitter) in an all-stock $45 billion deal, valuing xAI at ~$80 billion. The acquisition merges xAI’s compute, model, and distribution capabilities with X’s 600+ million users and real-time data stream, enabling rapid iteration on AI-driven experiences. With $16B+ in funding—including $6B last year and $10B recently—xAI is scaling infrastructure and deploying Grok at scale, positioning itself to challenge the leading AI labs through direct integration with social and search ecosystems .