Elon Musk’s artificial intelligence startup, xAI, is reportedly in talks to secure $6 billion from a global consortium of investors, including family offices based in Hong Kong. Musk aims to position xAI as a major player in the AI landscape, competing with industry giants like Microsoft and OpenAI. Negotiations are ongoing, with Musk seeking a $20 billion valuation for xAI.
The fundraising efforts involve reaching out to sovereign wealth funds in the Middle East, as well as potential investors from Japan and South Korea. Morgan Stanley is reportedly organizing the fundraising, although the bank has not officially commented on the matter.
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In comparison, OpenAI, known for its ChatGPT model, has secured around $13 billion, with Microsoft as a primary investor. OpenAI is also gearing up for a significant new funding round to support its growth ambitions. Another player in the large language model startup arena, Anthropic, has received substantial investment of around $6 billion from major tech companies Google and Amazon.
xAI recently achieved a milestone by securing investor commitments totaling $500 million, making progress toward its ambitious funding target of $1 billion. The current valuation during these discussions ranges between $15 billion and $20 billion. The AI sector continues to attract significant investments, reflecting the growing importance of artificial intelligence technologies.
