– xAI is near finalizing its latest funding round, expected to value the company at about $18 billion.
- The round could raise $6 billion, with investment from notable firms including Sequoia Capital.
- Details of the funding are still under negotiation, with possibilities of changes in valuation and timing.
Elon Musk’s xAI Corp. is on the brink of closing a significant funding round that could value the artificial intelligence startup at around $18 billion as early as this week. This development positions xAI as a formidable competitor to OpenAI, with the funding round not yet finalized but potentially reaching up to $6 billion. This round includes participation from prominent investors such as Sequoia Capital.
The funding initiative is being promoted using a pitch deck that underscores the potential benefits for investors, highlighting Musk’s achievements with Tesla and SpaceX. Additionally, it emphasizes xAI’s access to high-quality data from Musk’s social network platform X, which is expected to enhance the startup’s capabilities in developing large language models similar to those used in AI chatbots.
Despite the advanced stage of discussions, sources suggest that details such as the exact valuation and the precise timing of the closure could still vary. The company, which is gaining attention for its AI-driven initiatives, has not publicly commented on the ongoing negotiations or the forthcoming funding round.