Elon Musk’s AI Startup xAI Eyes $3 Billion Funding Round

26 views
Investors close to Elon Musk are reportedly in talks to assist his artificial intelligence business, xAI, in a financing round
Investors close to Elon Musk are reportedly in talks to assist his artificial intelligence business, xAI, in a financing round

According to a statement by the Wall Street Journal, investors close to Elon Musk are reportedly in discussions to support his artificial intelligence startup xAI in a fundraising round aiming to raise $3 billion, which would value the company at $18 billion.

Key Backers and Potential Investors:

Venture capital firms Gigafund and Steve Jurvetson, among others, are considering participating in the funding round, according to sources familiar with the matter cited by the report. 

Additionally, a co-founder of another venture firm is reportedly involved, although specifics were not disclosed.

Fluid Terms and Momentum in Fundraising Talks:

While terms of the fundraising round have yet to be finalized, the discussions have gained momentum in recent times, suggesting a growing interest from potential investors. However, according to the Wall Street Journal, the plans remain subject to change.

Seeking to establish itself as a formidable player in the AI space, xAI, launched by Musk last year, aims to provide an alternative to established entities like Microsoft-backed OpenAI and Alphabet’s Google.

Contradictory Reports and Musk’s Response:

Contradictory reports have emerged regarding xAI’s fundraising efforts, with Musk previously denying talks of securing funding. Earlier reports suggested a potential valuation of $20 billion, which Musk refuted, emphasizing that xAI was not actively seeking capital.

Recent Developments and Product Enhancements:

In March, xAI unveiled an upgraded version of its chatbot Grok, named Grok-1.5, positioning it as a competitor to OpenAI’s ChatGPT. 

This launch reflects xAI’s ongoing efforts to innovate and expand its product offerings in the AI landscape.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

Previous Story

Procter & Gamble Recalls Millions of Laundry Detergent Pods

Next Story

U.S. Commerce Department Grants $6.6 Billion Subsidy to TSMC

Latest from Technology