A lot of compute is needed,” Mr. Musk said in a post about the financing, in which BlackRock, Fidelity and Sequoia participated.

Nevertheless, the deals — and xAI’s developer and consumer-facing products — have driven xAI’s revenue to around $100 million a year. For comparison, Anthropic is reportedly on pace to generate $1 billion in revenue this year, and OpenAI is targeting $4 billion by the end of 2024.

The sovereign wealth fund of the Sultanate of Oman, Oman Investment Authority (OIA), has invested in Elon Musk’s artificial intelligence (AI) startup, xAI, for an undisclosed stake. The investment is