Elon Musk’s artificial intelligence company, xAI, is reportedly on the verge of completing a significant funding round, aiming to raise $15 billion. This funding could position the company with a pre-money valuation of $230 billion, a noteworthy milestone in the tech industry.
According to CNBC, the deadline for the funding round was on November 25, 2023, with a target closing date set for December 19, 2023. The funds raised are expected to be primarily allocated towards acquiring graphics processing units (GPUs) essential for powering its advanced large language models. This move aligns with the trend in the tech sector, where major players like Amazon, Meta Platforms, Microsoft, Anthropic, and OpenAI have also invested heavily to enhance their AI infrastructure.
In a twist to earlier reports, Elon Musk publicly refuted claims in November that xAI was seeking to raise $15 billion, labeling the assertions as inaccurate on the social media platform X. Despite this, the ongoing funding discussions highlight the escalating interest and investment in AI technologies.
The company faced challenges earlier this year when its Grok chatbot made controversial comments, which xAI attributed to deprecated code. Following the incident, the company issued an apology, emphasizing its commitment to improving the chatbot’s responses.
Earlier in 2023, xAI made headlines by acquiring Musk’s social media platform, X, in an all-stock transaction valued at $45 billion. This acquisition marked a significant expansion of Musk’s ambitions in the AI and social media sectors.
As the demand for AI technologies continues to rise, xAI’s potential funding round underscores the fierce competition among companies striving to enhance their capabilities and infrastructure. The outcome of this funding effort will likely influence the broader landscape of AI development and investment in the coming years.
