In a significant move in the world of artificial intelligence, xAI, Elon Musk’s AI company, is in the process of raising $6 billion in a financing round that would value the company at $18 billion. This deal would give investors a 25% stake in the company and is expected to close in the coming weeks, provided that conditions do not change, which has already happened once.
Initially, Jared Birchall, Musk’s family office chief, informed potential investors that xAI was looking to raise $3 billion with a valuation of $15 billion. However, due to the growing interest in the funding, conditions have changed favorably.
It is rumored that Sequoia Capital and Future Ventures, co-founded by Steve Jurvetson, a longtime associate of Musk, are actively participating in the financing round. Other potential contributors include Valor Equity Partners and Gigafund, whose founders are also part of Musk’s inner circle of acquaintances.
Interest in xAI is not trivial, as the company is expected to use these funds to advance its goal of “connecting the digital and physical worlds”. This goal would be achieved by leveraging training data from each of Musk’s companies, which include Tesla, The Boring Company, SpaceX, and Neuralink.
This development is particularly notable not only for the huge amount of money raised but also for the caliber and proximity of the investors involved, highlighting Musk’s weight within the tech community and his ability to mobilize significant resources for his futuristic visions. xAI’s fundraising could mark a turning point in how companies dedicated to the fusion of advanced technology and practical applications in the real world are financed.