# XAI (company)

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X.AI Corp., doing business as xAI, is an American public-benefit corporation working in the area of artificial intelligence (AI). Founded by Elon Musk in March 2023, its stated goal is "to understand the true nature of the universe".

## History

xAI was founded by Musk in Nevada on March 9, 2023, and has since been headquartered in the San Francisco Bay Area in California. Igor Babuschkin, formerly associated with Google's DeepMind unit, was recruited by Musk to be Chief Engineer.
Musk officially announced the formation of xAI on July 12, 2023. He linked the date (7 + 12 + 23 = 42) to the book The Hitchhiker's Guide to the Galaxy by Douglas Adams, in which a supercomputer calculates that the answer to the ultimate question of "life, the universe, and everything" is 42; and to the company's mission "to understand the universe".
In December 2023, in a U.S. Securities Exchange Commission (SEC) filing, xAI revealed that it had raised US$134.7 million in outside funding out of a total of up to $1 billion. Despite the filing, Musk later claimed via X that xAI was not seeking any funding.
In May 2024, xAI was reported to be looking for $6 billion of funding. Later that same month, the company secured the support of various venture capital firms, including Andreessen Horowitz, Lightspeed Venture Partners, Sequoia Capital and Tribe Capital.
In May 2024, Musk predicted that AI will make most jobs obsolete, requiring a high universal income.
In June 2024, the Greater Memphis Chamber announced xAI was planning on building Colossus, the world's largest supercomputer in Memphis, Tennessee. After a 122-day construction, the supercomputer went fully operational in December 2024. Local government in Memphis has voiced concerns regarding the increased usage of electricity, 150 megawatts of power at peak, and while the agreement with the city is being worked out, the company has deployed 14 VoltaGrid gas generators to temporarily enhance the power supply. Environmental advocates state that the gas-burning turbines emit large quantities of gases causing air pollution, and that xAI has been operating the turbines illegally without the necessary permits.
As of August 2024, Musk was diverting a large number of Nvidia chips which had been ordered by Tesla, Inc. to X and xAI.
On December 23, 2024, xAI raised an additional $6 billion in a funding round supported by Fidelity, BlackRock, Sequoia Capital, among others, making its total funding over $12 billion.
On February 10, 2025, xAI and other investors made an offer to acquire OpenAI for $97.4 billion.
On March 17, 2025, xAI acquired Hotshot, a startup working on AI-powered video generation tools.

## Products

While xAI's stated goal is "to understand the true nature of the universe", one of its immediate objectives is to create an AI that is capable of advanced mathematical reasoning, something not found in current models as of 2023.
On November 4, 2023, xAI unveiled Grok, an AI chatbot that is integrated with X. xAI stated that when the bot is out of beta, it will only be available to X's Premium+ subscribers.
On November 6, 2023, xAI released PromptIDE, an integrated development environment (IDE) designed for prompt engineering and interpretability research, offering tools like a Python code editor and rich analytics to empower users in exploring and refining prompts for large language models like Grok-1.
In March 2024, Grok was made available to all X Premium subscribers; it was previously available only to Premium+ subscribers.
On March 17, 2024, xAI released Grok-1 as open source.
On March 29, 2024, Grok-1.5 was announced, with "improved reasoning capabilities" and a context length of 128,000 tokens.
On April 12, 2024, Grok-1.5 Vision (Grok-1.5V) was announced. Grok-1.5V is able to process a wide variety of visual information, including documents, diagrams, graphs, screenshots, and photographs.
On August 14, 2024, Grok-2 was made available to X Premium subscribers. It is the first Grok model with image generation capabilities.
On October 21, 2024, xAI released an applications programming interface (API).
On December 9, 2024, xAI released a text-to-image model named Aurora.
On February 17, 2025, xAI released Grok-3, along with other updates to Grok.

## Partners

A16Z, Blackrock, Fidelity Management & Research Company, Kingdom Holdings, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, and Vy Capital, among others.