Elon Musk’s artificial intelligence (AI) start-up xAI has raised $6 billion in equity financing, according to a filing with the US Securities and Exchange Commission.

A report by CNBC said that the capital injection brings the current valuation of the firm at more than $50 billion.

Founded in March last year, xAI focuses on developing advanced AI models to accelerate human scientific discovery and boost human’s understanding of the universe.

Current xAI’s projects include large language models Grok Models, which are designed for reasoning and coding, and PromptIDE, an integrated development environment for prompt engineering which enables users to create and refine AI models’ prompts.

The start-up is currently working on expanding its Colossus supercomputer to over one million GPUs. The AI supercluster is designed to manage large AI processing workloads and is currently one of the most developed AI supercomputers in the world.

Earlier this month, the company also announced plans to expand its facility in Memphis, Tennessee, to increase its capacity to build and offer chatbots and other AI-based tools.

The fundraising aims to boost the development of these advancements, competing against genAI rivals such as OpenAI, which closed a $6.6 billion funding round in October, bringing the start-up's value to $157 billion.

In a statement, OpenAI said it will use the capital to boost its AI research to develop new AI led tools.

In November, Musk filed a lawsuit against ChatGPT accusing the artificial intelligence company of illegally monopolising the generative intelligence market. Musk also accused OpenAI of collaborating with Microsoft in anti-competitive practices that discriminate against competitors such as xAI.

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