Talks are in early stages with both existing and new investors including Sequoia Capital and Valor Equity
Elon Musk, the founder of artificial intelligence xAI, is seeking new funding at a valuation of around $40 billion. This comes just months after the company raised $6 billion in a previous round.
Bloomberg writes about it.
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Funding discussions are at an early stage and details could change or talks could not take place, said the source, who spoke on condition of anonymity. xAI did not respond to requests for comment, and the Wall Street Journal previously reported on the deal, citing people familiar with the negotiations.
The valuation of xAI was $24 billion, including the funds raised during the previous round in May. That means the latest deal will be a significant boost and elevate the startup’s status to one of the most valuable in the US. Funds raised from the new round will add to its $40 billion valuation, according to the Wall Street Journal.
At the Future Investment Initiative conference in Riyadh, Musk stated that his goal is to double xAI’s access to computing power, which is an important resource for artificial intelligence. According to Musk, the xAI data center in Memphis is already the largest of its kind.
“We already have the most powerful learning cluster in the world with xAI, and we’re going to double it,” Musk said.
Musk is looking to compete with OpenAI, the current leader in artificial intelligence, whose latest valuation is $157 billion. Musk, who co-founded OpenAI, cut ties with the startup and has criticized its approach to artificial intelligence in recent years.
