Elon Musk's AI Firm X.AI Rockets Toward $18B Valuation: Report

Author: Shivani Kumaresan | May 09, 2024 09:51am

Elon Musk's artificial intelligence startup X.AI Corp. is poised to conclude its funding round this week with a valuation of roughly $18 billion.

According to a Bloomberg report, the exact size of the funding round remains undetermined. 

The investment, intended to raise $6 billion, reportedly draws interest from investors like Sequoia Capital. The discussions are ongoing, leaving room for potential adjustments in valuation and timing. 

Reportedly, the pitch deck for X.AI Corp.'s funding round underscores Musk's successful track record at Tesla Inc (NASDAQ:TSLA) and SpaceX, as well as the potential benefits of utilizing data from X for training purposes. 

Securing quality data is seen as pivotal in developing robust AI chatbots, a realm where X.AI Corp. aims to vie with formidable competitors like OpenAI.

Competing in the domain of AI chatbots, particularly those powered by advanced language models, necessitates access to high-quality data. 

Also Read: Elon Musk's Tesla Sues Indian Company For Trademark Infringement: Report

The update comes after a series of conflicting reports about xAI's funding.

In January, it was reported that the startup had secured $500 million in funding, a claim that was debunked by Musk.

In March, Musk made xAI's chatbot Grok open-sourced, a move that industry experts predicted would attract significant funding for xAI.

Founded in 2023, xAI launched its AI bot Grok in November to use "AI tools that maximally benefit all of humanity." Grok is available for use on the X platform.

Microsoft Corp (NASDAQ:MSFT)- backed OpenAI, xAI's main competitor, is valued at $80 billion.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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