According to regulatory filings with the US Securities and Exchange Commission (SEC), the funding involved contributions from 97 investors. 

However, the filing did not disclose the identities of the backers or provide specific details about the company’s valuation.

The funding round comes as xAI works towards competing with companies like OpenAI and Anthropic. xAI is channelling resources into expanding its supercomputing capabilities in Memphis, Tennessee, with the facility now housing over 100,000 Nvidia GPUs. 

The centre, initially constructed in just 122 days, is expected to receive significant upgrades next year, including an additional 150MW power capacity.

xAI, founded by Musk last year, has launched its proprietary generative AI model, Grok, which powers features on X (formerly Twitter). 

Grok has received attention for its willingness to tackle unconventional topics, distinguishing it from other AI systems. Musk claims the model is “maximally truth-seeking” and less biased compared to competitors.

In addition to its integration with X, Grok has been embedded into third-party applications via an API launched in October. The company is reportedly developing a standalone app to rival OpenAI’s offerings, set for release in December.

xAI’s business model also leverages synergies across Musk’s other ventures. The AI startup contributes to customer support for SpaceX’s Starlink service and is in discussions with Tesla for research and development collaborations. 

Issues have been raised by Tesla shareholders and others, about possible conflicts of interest, alleging that Musk is diverting resources from Tesla to xAI.

Musk has placed xAI as a challenger to OpenAI, a company he co-founded but left in 2018. In a current lawsuit, Musk accuses OpenAI of a monopoly that hinders competition in the AI space. The suit also reveals the strategic advantage OpenAI gains from its partnership with Microsoft.

With these challenges, Musk asserts that xAI’s access to data from X provides a competitive edge. The company recently updated X’s privacy policy, allowing xAI to train its models using social media content.

Since its inception, xAI has grown from a small team to over 100 employees. The company recently relocated to larger offices in San Francisco and plans to raise additional funds in 2025 to sustain its rapid expansion.

The AI funding sector is now highly competitive, with companies like Anthropic and OpenAI securing billions in recent months.

However, Musk’s vision for xAI, coupled with its integration across multiple industries, makes the startup strong in the AI space.

The judgement follows an investigation by the US Securities and Exchange Commission (SEC), which uncovered a wide range of financial irregularities within Mmobuosi’s business empire, including the fintech company Tingo Group. 

The court’s ruling marks the end of Mmobuosi’s high-profile career in the corporate world.

Dozy Mmobuosi, who once attracted international attention with his attempt to acquire Sheffield United Football Club, was found guilty of inflating the financial performance of his companies to mislead investors. 

According to the SEC, his firms, including Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings, fabricated nearly all their reported financial metrics, including assets, revenues, and customer numbers. 

One of the most disturbing findings was the revelation that Tingo Mobile, a subsidiary of Tingo Group, claimed to have cash reserves of $461.7 million in Nigerian bank accounts, when in fact, the actual balance was less than $50. 

This gross misrepresentation was a key factor in the SEC’s decision to file charges against Mmobuosi and his companies in December 2023.

The court, presided over by Judge Jesse M. Furman of the Southern District of New York, ruled that Mmobuosi and his entities had failed to respond adequately to the charges, leading to a default judgment. 

The ruling goes beyond imposing financial penalties and bars Dozy Mmobuosi from holding any directorial position in a public company, effectively ending his involvement in the corporate sector.

The SEC’s investigation was initially prompted by a report from Hindenburg Research, which labelled Tingo Group as a “blatant scam.” 

The report, which caused Tingo’s stock to plummet, raised serious problems about the legitimacy of Mmobuosi’s business operations and attracted the attention of US regulators. 

Shortly after the report’s publication, the SEC suspended trading in the shares of Tingo Group and Agri-Fintech Holdings, citing doubts about the accuracy of publicly available information.

Despite Mmobuosi’s denials of wrongdoing and claims that the allegations were baseless, the SEC’s findings reveal something different. 

The court’s final judgment includes orders for the cancellation of shares held by Mmobuosi and his companies and the disgorgement of ill-gotten gains. The penalties also include a ban on Mmobuosi’s participation in the trading of any securities, further isolating him from the financial markets.