Elon Musk’s AI Startup XAI Wants $6 Billion To Compete With OpenAI

(CTN News) – The Financial Times reported that Elon Musk’s xAI is in active discussions with a global consortium of investors, including prominent Hong Kong family offices, to secure $6 billion.

With this move, xAI underscores its intention to position itself as a formidable contender in the competitive landscape alongside industry giants such as Microsoft and OpenAI.

Based on insights from three credible sources with direct knowledge of the matter, the Financial Times can confirm that these negotiations are currently underway but may change in the near future.

It is reported that Elon Musk is steadfast in his pursuit of a valuation for xAI of $20 billion. Elon Musk has contacted sovereign wealth funds located in the Middle East, as well as potential Japanese and South Korean investors in order to achieve this objective.

Morgan Stanley is reported to be the organizer of this fundraising; however, the bank has not made any official comments on the event.

xAI’s rival OpenAI, the Elon Musk popular ChatGPT maker, has secured a staggering sum of approximately $13 billion, with Microsoft serving as its primary investor.

Additionally, it is reported that OpenAI is in the process of preparing for a large new round of funding, which indicates that it intends to continue to expand.

In parallel developments, Anthropic has emerged as a significant player within the domain of large language model startups, attracting an impressive investment of approximately $6 billion. The financial backing of this project is attributed to two major technology companies, Google and Amazon.

A significant milestone has recently been achieved by xAI by Elon Musk securing investor commitments totaling $500 million, marking a significant step towards its ambitious funding goal of $1 billion. It is estimated that the value of the company will fall between $15 billion and $20 billion during these discussions.

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