Elon Musk’s xAI Corp is on the verge of completing a funding round that could value the artificial intelligence (AI) start-up at over $24 billion. The funding, which began last year, was initially expected to reach $6 billion, but recent reports suggest that xAI Corp is now aiming even higher, seeking as much as $6.5 billion. While the final close of the funding round has not yet happened, insiders predict that it will be concluded in June.
The increased ambition in funding represents a significant development for xAI Corp, which was initially reported to be seeking only $1 billion in funds. The start-up, seen as a competitor to OpenAI, has been actively marketing its potential to Silicon Valley investors. The pitch deck emphasized Elon Musk’s track record with Tesla and SpaceX, highlighting his ability to foster successful ventures. Additionally, xAI Corp noted that it would leverage the high-quality data from X, which is Musk’s social platform (formerly known as Twitter), to enhance its language models and chatbot, Grok.
Access to data is critical for building robust language models that power AI chatbots, and it is an area where xAI Corp aims to compete with well-funded businesses like Microsoft-backed OpenAI. The current funding round is expected to give xAI Corp a pre-money valuation of $18 billion, a measure that does not include the funds raised. The details of the funding round were previously reported by the Financial Times.
Recently, Elon Musk spoke at the Viva Technology conference in Paris about xAI Corp’s objectives. He emphasized the importance of the AI being “as truth-seeking as possible” while criticizing other AI models developed by Google and OpenAI for pandering to political correctness. Musk also outlined xAI Corp’s goal of becoming the funniest AI, showcasing his aspirations for the company’s chatbot to have a humorous side.
In summary, xAI Corp, led by Elon Musk, is expected to raise $6.5 billion in funding in a round that could value the start-up at over $24 billion. The increased funding ambitions highlight the growing interest in AI and xAI Corp’s potential as a competitor to OpenAI. With access to high-quality data and Musk’s visionary direction, xAI Corp aims to develop language models and chatbots that are both truth-seeking and entertaining.
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