Elon Musk’s AI startup, X.AI Corp., is poised to close a funding round with an anticipated valuation of approximately $18 billion, potentially by the end of this week, according to a recent report by Bloomberg citing sources familiar with the matter.
Although the final amount to be raised in this funding round has not been confirmed, it is expected to be in the vicinity of $6 billion. Notable participants in this round reportedly include Sequoia Capital.
Details of the deal, including valuation and timing, are still subject to potential adjustments, according to insiders who spoke on condition of anonymity due to the sensitive nature of the information.
The investment proposition for xAI, which competes with OpenAI, underscores Musk’s track record of success with ventures such as Tesla Inc. and SpaceX. It’s reported that the company intends to utilize data from Musk’s social media platform, X (formerly Twitter), to train its AI models.
Established in March 2023, xAI’s objective is to develop AI capable of advanced mathematical reasoning, a feature not yet present in existing models. The company has introduced a chatbot named Grok, which is integrated with the X platform and will be available to Premium+ subscribers once it exits beta testing.
May 2024, Cryptoniteuae
