xAI, which launched its first product, a chatbot named Grok, in November, needs substantial funding due to the costs associated with developing generative AI models. These models are capable of producing human-like text, images, and code within seconds. OpenAI, xAI's rival, has already secured approximately $13 billion from Microsoft. Other AI startups like Anthropic and Cohere have also raised billions from major tech companies and venture capital groups. In December, xAI indicated its intention to raise $1 billion in funding from equity investors, having already raised nearly $135 million.
Key takeaways:
- Elon Musk's AI startup, xAI, is reportedly in talks with global investors to raise $6 billion in funding to compete with Microsoft-backed OpenAI.
- The company aims to secure fresh equity capital at a proposed valuation of $20 billion.
- xAI's first product is a chatbot named Grok, which has real-time knowledge of the world due to being trained on the X platform.
- In December, xAI filed documents with the SEC, indicating its intention to raise $1 billion in funding from equity investors, having already raised nearly $135 million.