xAI
ai labUnderstand the Universe
xAI was founded in March 2023 by Elon Musk alongside researchers from DeepMind, Google, and Microsoft. The company develops advanced AI models under the Grok brand and operates at massive compute scale through its Colossus supercomputer cluster in Memphis, Tennessee. The company raised $6 billion in Series B funding at a $24 billion valuation in May 2024, followed by a $6 billion Series C at $50 billion in December 2024. In March 2025, xAI acquired X Corp. (formerly Twitter) for $33 billion. A $10 billion debt/equity raise in July 2025 valued the company above $120 billion. In January 2026, xAI closed a $20 billion Series E round with investors including Valor Equity Partners, Fidelity, Qatar Investment Authority, NVIDIA, and Cisco Investments. In February 2026, SpaceX acquired xAI in an all-stock deal valuing xAI at $250 billion. By March 2026, all original co-founders except Elon Musk had departed the company. xAI's flagship product, Grok, serves approximately 600 million monthly active users across the X platform and Grok mobile apps. The latest model, Grok 4.20, features a 2 million token context window and is available via API with pricing starting at $2.00/$6.00 per million input/output tokens. Grok 5 is currently in training. Beyond language models, xAI offers Grok Voice (real-time voice agent API), Grok Imagine (image and video generation), Grokipedia (AI-powered knowledge base), and an AI Game Studio. The company holds a $200 million contract with the U.S. Department of Defense for military AI applications.
Tools by xAI
Other AI tools from the same organization.
AI Models by xAI
Large language models from the same organization.
| Model | Context Window | Price (In / Out per M) |
|---|---|---|
| Grok 4.20 Multi-AgentCurrent | 2.0M | $2.00 / $6.00 |
| Grok 4.20Current | 2.0M | $2.00 / $6.00 |
| Grok 4.1 FastCurrent | 2.0M | $0.20 / $0.50 |
| Grok 4 FastCurrent | 2.0M | $0.20 / $0.50 |
Latest News about xAI
Recent coverage and updates
SpaceX Acquires Cursor for $60 Billion in First Post-IPO Power Move
SpaceX is buying AI coding startup Cursor for $60 billion in an all-stock deal, its first major acquisition since going public. The deal gives Elon Musk's company access to Cursor's 1 million-plus developers and a foothold in the fast-growing AI coding tools market.
Judge Dismisses xAI Trade Secret Lawsuit Against OpenAI With Prejudice
A federal judge dismissed xAI's trade secret lawsuit against OpenAI with prejudice, ruling it would be 'futile' for Elon Musk's company to continue. The dismissal marks Musk's second court defeat against OpenAI in four weeks and ends a case that alleged OpenAI sought Grok 4 trade secrets during recruiting.
SpaceX IPO Makes Musk First Trillionaire as AI Megadeals Reshape the Company
SpaceX pulled off the largest IPO in history at $85.7 billion, vaulting Elon Musk to a $1.3 trillion net worth and making him the world's first trillionaire. But the real story is what the company is becoming: newly revealed AI infrastructure deals with Google and Anthropic, worth over $2 billion per month, position SpaceX as a major hyperscale AI data center provider -- not just a rocket company.
Trump Administration in Talks for Direct Government Stake in OpenAI
The Trump administration is negotiating a direct government equity stake in OpenAI, with President Trump calling it a potential partnership where the American public shares in AI wealth. Bernie Sanders proposes a competing 50% stock tax on AI giants. Both plans signal a historic shift toward public ownership of AI.
xAI Trained Its Coding Models on Claude Outputs for Months Before Getting Cut Off
Elon Musk's xAI spent months distilling Anthropic's Claude to train its own coding models, continuing through personal accounts even after Anthropic revoked official access in January 2026. The revelation, reported by The Information, raises fresh questions about model distillation and the data supply chain behind AI coding tools.
Trump Admin Discusses Taking U.S. Government Equity Stake in OpenAI
The Trump administration and OpenAI are in talks about the U.S. government receiving donated equity in the AI giant to seed a 'Public Wealth Fund' that would distribute AI profits to American citizens. The discussions, ongoing for over a year, signal a potential reshaping of how the government partners with frontier AI companies — with rival Anthropic notably excluded from the conversation.
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