The email sent to potential investors outlines the terms for participating in the xAI financing round through SPVs. For investments of $10 million and up, an investor will get a piece of an SPV that is ahead of other SPVs on the cap table of xAI, but will be charged a 5% upfront fee, a management fee of 1%, and carried interest of 10%. The email also indicates that xAI expects to raise the funds in the next 2-3 weeks on a first come, first served basis.
Key takeaways:
- Elon Musk is raising funds for his new AI startup, xAI, at a $15 billion pre-money valuation.
- Investors are being offered access to the deal through special purpose vehicles (SPVs) with high fees.
- xAI is a project that emerged out of Twitter and its only product so far is the Grok chatbot.
- The startup is seeking $3 billion in outside investment, which would bring its post-money valuation to $18 billion.