Elon Musk’s AI startup xAI seeking $4 billion in funding to compete with OpenAI
Elon Musk’s new AI startup xAI is seeking to raise $4 billion in funding which will lead the value of the company to $18 billion, according to a report sent to investors.
An email of possible funding including around a 20-page pitch deck is making the rounds around Silicon Valley’s venture investing industry, according to someone who received one. People who are interested in participating in the deal have spoken with others in their own networks, as per a person close to Musk who asked not to be named while discussing private information.
The fundraising round’s criteria and money values are still subject to change, the person said. Some details of the deal were earlier reported by the Wall Street Journal.
The pitch deck mainly focuses on potential selling points for investors. It also highlights Musk’s achievements at Tesla Inc. and Space Exploration Technologies Corp. The pitch also indicates that xAI will be able to train on the high-quality data from Musk’s social network X. Having access to data is important for the company to build large language models and technology that power AI chatbots. This is in line with xAI’s goal to take on other well-funded companies, like OpenAI backed by Microsoft.
