Elon Musk's artificial intelligence startup, xAI, is currently in discussions with investors to secure a new round of funding. The potential investment could elevate the company's valuation to approximately $40 billion. xAI aims to raise several billion dollars in this round, with the raised funds contributing to the new valuation estimate. However, these negotiations are still in the early stages, and the terms could change or talks might break down.
Previously, in May, xAI successfully raised $6 billion in a Series B funding round, which placed the company's post-investment valuation at $24 billion. This round included investors such as Andreessen Horowitz and Sequoia Capital. Musk launched xAI in July 2023 as an alternative to OpenAI's ChatGPT. In March, xAI announced plans to open-source its ChatGPT competitor, "Grok," allowing the public to explore and experiment with the technology's underlying code.
