Elon Musk is making moves to raise new funding for his artificial intelligence venture, xAI, with the company reportedly aiming for a staggering $40 billion valuation.
The funding discussions are still in their early stages, and while the deal could change or fall apart, it marks a significant leap for the young startup. Just a few months ago, xAI secured $6 billion in funding, bringing its valuation to $24 billion at that time.
Pushing xAI to new heights
The proposed $40 billion valuation would place xAI among the most valuable startups in the United States, signalling Musk’s ambition to turn it into a major player in the AI race. Sources indicate that the new funding, if successful, would be added to the company’s overall valuation, further boosting its financial position. However, xAI has remained tight-lipped on the matter, declining to comment on the funding discussions.
Musk outlined his plans for the company during a virtual appearance at the Future Investment Initiative conference in Riyadh, explaining that his goal is to double xAI’s access to computing resources. This is a crucial move in the AI industry, where access to powerful computing clusters is essential for training advanced models. Musk shared that xAI’s data centre in Memphis is currently the largest of its kind, and with the planned expansion, the company aims to solidify its technological edge.
Competing with AI giants
Musk’s ambitions for xAI reflect his desire to compete head-to-head with industry giants like OpenAI. Interestingly, Musk was once a co-founder of OpenAI but has since distanced himself from the organisation, criticising its approach to AI development. OpenAI, now valued at approximately $157 billion, is widely seen as the leader in the field. Musk’s decision to build xAI demonstrates his intent to challenge that dominance and chart a new course in the rapidly evolving AI landscape.
Content retrieved from: https://www.firstpost.com/tech/elon-musk-seeks-funding-for-his-ai-venture-xai-at-a-40-billion-valuation-13830515.html.
