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