xAI Skyrockets: Elon Musk’s AI Startup Hits $20B Valuation!

xAI Skyrockets: Elon Musk's AI Startup Hits $20B Valuation!

Elon Musk’s new AI startup, xAI, is causing a stir in the tech world as it approaches a staggering valuation of $20 billion in its first funding round. Investor interest is skyrocketing, surpassing initial expectations, sources reveal exclusively to The Post.

Musk’s xAI, the force behind the witty Grok chatbot, is on track to secure between $7 billion and $8 billion at a valuation of $20 billion. This places xAI in fierce competition with tech giants like Google’s Gemini AI platform and OpenAI’s ChatGPT.

Surpassing previous reports, which indicated a $6 billion raise at an $18 billion valuation, the current funding round promises to be a game-changer for Musk’s ambitious venture.

Elon Musk, renowned for founding groundbreaking companies such as Tesla, SpaceX, Neuralink, and The Boring Company, is racing to finalize the funding round by this Friday. With potential investors eager to contribute more, there is talk of a second round to accommodate the overwhelming demand.

One key appeal driving investor interest is Musk’s vision of leveraging Tesla’s immense computing power to enhance xAI. By utilizing the untapped computing capacity of Tesla’s electric vehicles, currently utilizing only 10% of their computing power, Musk aims to revolutionize the capabilities of xAI.

Despite some funding coming from the Middle East, Musk has chosen to steer clear of Chinese investments, including those from Hong Kong. This strategic move underscores Musk’s cautious approach to securing funding for xAI, ensuring alignment with his long-term goals.

Previous reports from February hinted at a potential valuation between $10 billion and $20 billion for xAI, setting the stage for the current funding frenzy. In April, Musk highlighted the need for 100,000 Nvidia H100 chips to train an upgraded version of the chatbot ‘Grok 3,’ surpassing the 20,000 chips required for the current iteration, Grok 2.

Despite initial denials from Musk about raising capital for xAI earlier this year, regulatory filings hinted at fundraising plans. Last year, xAI disclosed intentions to raise a minimum of $1 billion through an equity offering, setting the foundation for the ongoing funding endeavors.

As the excitement builds around Elon Musk’s latest venture, xAI, the tech world eagerly awaits the outcome of its groundbreaking funding round. With potential valuations soaring to unprecedented heights, xAI’s trajectory is poised to reshape the landscape of artificial intelligence and innovation in the years to come.

Tags:

No responses yet

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    Latest Comments

    No comments to show.