Adrian JohnsonTLDR:
Elon Musk’s startup, xAI, is reportedly in talks to raise up to $6 billion in funding at a valuation of $20 billion. The company is aiming to position itself as an alternative to OpenAI and has been in discussions with investors in Hong Kong and the Middle East. The fundraising is said to be led by Morgan Stanley. This comes after Musk denied reports that xAI had already secured $500 million in funding towards a $1 billion goal. Musk has been critical of OpenAI since leaving the company’s board in 2018.
Elon Musk’s startup is reportedly building up a war chest to take on OpenAI
Elon Musk’s artificial intelligence startup, xAI, is seeking to raise as much as $6 billion in funding in order to challenge OpenAI. The company is reportedly discussing the funding with investors in Hong Kong and the Middle East and has a proposed valuation of $20 billion. The funding round is said to be led by Morgan Stanley. This comes after xAI denied reports that it had raised $500 million towards a $1 billion goal last week.
xAI’s efforts to raise a war chest could suggest that Musk is focusing on building AI products outside of Tesla. Musk recently issued an ultimatum to Tesla’s board, requesting 25% voting control at the company or he would stop developing AI at Tesla. xAI aims to position itself as an alternative to OpenAI, a company that Musk helped found but left in 2018. OpenAI is reportedly seeking a valuation of over $100 billion.
