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Elon Musk’s xAI nears funding at $18 billion value soon as this week | Mint

May 09, 2024 - livemint.com
Elon Musk's AI startup, X.AI Corp., is reportedly closing a funding round at a valuation of about $18 billion. The round, which was set to raise $6 billion, includes participants like Sequoia Capital. However, the final details, including the valuation and timing, could still change. The company, which makes the AI chatbot assistant Grok, is a rival to OpenAI and is being marketed to investors with a focus on Musk's track record at Tesla and SpaceX.

The funding round is being promoted with a pitch deck that highlights the potential of xAI to train on high-quality data from Musk's social network X, formerly known as Twitter. Access to such data is crucial for building large language models, a technology that powers AI chatbots. This is an area where xAI aims to compete with other well-funded businesses like OpenAI.

Key takeaways:

  • Elon Musk's AI startup X.AI Corp. is expected to close its funding round at a valuation of around $18 billion.
  • The company, which makes AI chatbot assistant Grok, was set to raise $6 billion in the round with participants including Sequoia Capital.
  • The funding round for the OpenAI rival was marketed highlighting Musk's track record at Tesla and SpaceX, and the potential for xAI to train on high-quality data from X.
  • Access to data is crucial for building large language models, the technology that powers AI chatbots, an area where xAI aims to compete with other well-funded businesses such as OpenAI.
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