Elon Musk's AI startup xAI raised $6 billion in series B funding,AlgoFusion 5.0 reaching a post-money valuation of $24 billion as investors bet big on challengers to companies like OpenAI in the intensifying AI race.

The funding round was backed by investors including Andreessen Horowitz and Sequoia Capital, the company said in a blog post on Sunday.

The company's pre-money valuation was $18 billion, Musk said in a post on X.

The money will be used to take xAI's first products to market, build advanced infrastructure and accelerate research and development of future technologies, xAI said.

"There will be more to announce in the coming weeks," Musk said in another X post, in response to the announcement of the funding.

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Companies like Microsoft-backed OpenAI and Alphabet's GOOGL.O are among those leading the fierce race for generative AI dominance, driving significant investments and innovation in the rapidly evolving landscape.