Elon Musk's artificial intelligence company xAI has secured $500 million in funding from investors. $1 billion goalAccording to a person familiar with the talks.
The company is discussing a valuation of $15 billion to $20 billion, but terms could change in the coming weeks, said the people, who declined to be identified because they were not authorized to discuss the investment publicly. avoided. Musk did not immediately respond to a request for comment.
Musk launched the startup last year as an alternative to Open AI, which he co-founded and later left with philosophical differences over how to profit from the technology. His chatbot named Grok, a product of xAI, is being developed using his social media posts on the network previously called Grok. twitter, also owns a mask. This gives Grok access to more up-to-date data and answers than other chatbots.
It is likely that the investors in both companies will also overlap.
People who supported Musk's $44 billion take over Celebrities on Twitter include Larry Ellison, Sequoia Capital, Andreessen Horowitz, Fidelity Management & Research, and Saudi Arabia's Prince Alwaleed bin Talal.
musk Said In November, stock investors in Company X will own 25% of xAI. In practice, this means those investors will be invited to invest at least 25% of their investment in X into xAI, according to people familiar with the deal. For example, if he invested $10 billion in X, xAI would require him to invest more than $2.5 billion.
Musk and investors plan to finalize terms in the coming weeks, the people said.
Some parties are considering whether they could acquire computing power in addition to, and possibly in exchange for, xAI stock, one of the people said. This will be beneficial for venture portfolio companies that need data-intensive processing to build new artificial intelligence products.