According to a report by CNBC, Elon Musk is seeking an "appropriate valuation" for his AI startup, xAI, during a call with investors last week. Although there was no direct mention of a fundraising round, the discussions hint at an imminent significant funding move. Sources reveal that xAI is targeting potential annual revenue of $1 billion or more.
Previously, reports suggested xAI aimed to raise $6 billion at a $50 billion valuation, partly to acquire 100,000 Nvidia (NVDA, Financial) chips. The investment group includes $5 billion from a Middle Eastern sovereign fund and an additional $1 billion from other investors. Last month, xAI merged with social media platform X via a stock swap, bringing the combined valuation to $80 billion. Musk previously mentioned that X is valued at $33 billion.
