Elon Musk’s artificial intelligence startup, xAI, is reportedly in early discussions to raise up to $20 billion in new funding, potentially valuing the company at $120 billion. This marks a significant increase from its $80 billion valuation just over a month ago. The fundraising effort comes amid heightened investor interest in AI ventures, following OpenAI’s recent funding round that valued it at $300 billion.
Founded in 2023, xAI has closely integrated with Musk’s social media platform X (formerly Twitter). In March, Musk announced that X had been sold to xAI in an all-stock deal, effectively merging the two entities. xAI’s flagship product, the Grok chatbot, is trained on user data from X and is available exclusively on the platform.
The potential funding round would provide xAI with substantial resources to compete in the rapidly evolving AI landscape, where large language models and generative AI tools are reshaping various industries. The integration of X’s vast user data and distribution capabilities with xAI’s AI tools positions the company to challenge established players like OpenAI and Anthropic.
