Between fundraising, price increases and other financial movements, Elon Musk is up to something with X and AI. But what is he going to do with all this money?
Elon Musk, visionary entrepreneur and founder of multiple technology companies, recently made two major initiatives that are resonating across the global technology ecosystem. His artificial intelligence startup, xAI, raised an additional $6 billion, cementing its position as a major player in the generative AI space.
At the same time, Musk increased the price of the Premium+ subscription of his X platform (formerly Twitter), a measure which is part of a broader strategy for financing and developing technological innovations. These two announcements underline a clear ambition: to lead the race for next-generation AI.
A record fundraising for xAI
Founded in July 2023, xAI is positioned as a key player in the field of generative artificial intelligence, a booming sector dominated by companies like OpenAI and Google DeepMind. In 2024, xAI completed two major fundraising rounds, totaling $12 billion. The last, announced in December 2024, allowed the start-up to reach an estimated valuation of nearly $50 billion.
This fundraising attracted high-profile investors, including Blackrock, Sequoia Capital, Fidelity, Andreessen Horowitz (A16Z) and the Saudi fund Kingdom Holding. This massive support reveals the growing market interest in AI technologies capable of transforming traditional economic sectors.
The funds raised will mainly be used to strengthen xAI’s technical infrastructure. The main objective of this initiative is the development of Colossus, a supercomputer equipped with 200,000 Nvidia graphics chips. This computing power will make it possible to train models like Grok, a generative AI which is positioned as a direct competitor to OpenAI’s GPT models.. This strategy aims not only to reduce the technological gap with current leaders, but also to position xAI as a key player in tomorrow’s economy.
The increase in prices for X’s Premium+ subscription
While xAI is mobilizing billions to expand, X, the former Twitter platform, has taken a different approach to bolstering its revenue. Since December 21, 2024, the price of the Premium+ subscription has seen a significant increase. In the United States, the monthly price increased from $16 to $22, an increase of 37.5%. In Europe, monthly rates increased from 19.36 to 21 euros, while the annual subscription increased from 203.28 to 219 euros. For existing subscribers, these new prices will come into effect from January 20, 2025.
This price increase is accompanied by new features aimed at justifying the additional cost. These include completely ad-free browsing, access to advanced tools like Radar to track real-time trends, and increased limits for interactions with AI models like Grok. Additionally, Premium+ subscribers help fund a revenue sharing program for content creators, a measure that encourages the production of quality content.
A global strategy at the service of innovation
These two initiatives, although distinct, are part of a coherent strategic vision. Elon Musk seems determined to bring his different companies together towards a common goal: dominate the generative AI race.
xAI’s fundraising allows the company to develop advanced models capable of competing with those of market leaders. The massive investment in advanced computing infrastructures demonstrates a clear ambition to have the necessary resources to meet the technological challenges of tomorrow. At the same time, the revenue generated by X helps finance the deployment of new AI-based technologies while improving the user experience.
This synergy between xAI and X could mark a turning point in the evolution of the technological landscape. The AI models developed by xAI could be integrated directly into X’s offerings, thus strengthening the attractiveness of the platform. Such an approach would allow Musk to solidify his position as a leader not only in AI, but also in social platforms and digital ecosystems.
By combining a record fundraising for xAI and a strategic pricing review for X, Elon Musk once again demonstrates his ability to transform ambitious ideas into tangible realities. These initiatives reflect a long-term vision focused on innovation and value creation, positioning Musk as a key player in the race for generative AI. If these efforts bear fruit, they could redefine the contours of the digital and technological economy in the years to come.
