Elon Musk’s artificial intelligence startup, xAI, is actively negotiating for a significant funding round. Its ambition is to elevate its market valuation to around $40 billion.
The Wall Street Journal report released on Tuesday highlights the fluid nature of these preliminary discussions. The talks are at an early stage, suggesting that the terms of the agreement are still flexible and may undergo adjustments or could potentially be called off entirely.
xAI’s goal for this funding round is to raise several billion dollars. Achieving this financial target would bolster the startup’s valuation to the projected $40 billion. This strategic move would mark a substantial increase from its previous funding achievements and position xAI as a formidable player in the competitive AI technology market.
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In May, the startup secured $6 billion in Series B funding, achieving a post-money valuation of $24 billion with backing from prominent investors like Andreessen Horowitz and Sequoia Capital.
Launched by Elon Musk in July 2023, xAI emerged as a competitor to OpenAI’s ChatGPT.
In March, xAI announced plans to open-source its AI model, Grok. This move allows public access to the code, positioning xAI alongside companies like Meta and France’s Mistral, which also offer open-source AI models. Musk has not yet responded to a Reuters request for comment regarding these developments.
