ARK Invest invests $60 million in Elon Musk's xAI

ARK Invest, led by Cathie Wood, has announced the acquisition of shares in Elon Musk's artificial intelligence (AI) startup. On May 28, the company disclosed xAI's stake through an email to its customers.

On May 10, X introduced AI-managed audiences, allowing advertisers to target while AI creates the right group of users. This investment is ARK Invest's latest move related to AI. Previously, ARK Invest revealed that 4% of its shares belonged to OpenAI and 5% of its assets belonged to Anthropic.

Winton said he believes AI platform models will be worth “trillions of dollars by the end of the decade.”

During the 2021 COVID-19 pandemic, Wood made headlines with his bullish investment in Tesla, another company related to Musk.

xAI, Elon Musk's latest AI venture launched in March 2023, aims to compete with OpenAI, Google, and Microsoft.

On May 26, xAI announced it had raised $6 billion in a Series B funding round with major investors such as Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed bin Talal, and Kingdom Holding.

That particular funding round boosted xAI's valuation to around $24 billion, marking a major milestone, especially considering the startup has only been in existence for a little over a year. Musk also hinted at plans to launch a new data center in the fall of 2025.

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