Elon Musk's xAI in Talks for $10 Billion Funding Round, Valuing Company at $75 Billion

Elon Musk's xAI Targets $75B Valuation With Potential $10B Capital Raise, Report Says

The AI company is also reportedly nearing a deal to buy servers from Dell powered by Nvidia chips. Elon Musk's artificial intelligence startup xAI is meeting with investors about a potential $10 billion fundraising round, according to a report from Bloomberg Friday. Such a capital raise would value the Grok chatbot developer at $75 billion, the report said, compared to a prior valuation of $51 billion. Last year, xAI said it raised $6 billion through a funding round in April and another $6 billion in December. Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners are among xAI's current investors reportedly in talks to participate in the $10 billion raise. The three investment firms and xAI did not immediately respond to requests for comment. The news comes as xAI is reportedly nearing a deal with Dell Technologies (DELL) to buy more than $5 billion of servers powered by Nvidia (NVDA) GB200 chips. The deal is still being finalized, Bloomberg reported, but Dell could be asked about it by Wall Street analysts when it reports earnings later this month on Feb. 27. Separately, an investor group led by Elon Musk recently submitted a $97.4 billion offer to buy xAI competitor OpenAI, according to a Wall Street Journal report earlier this week. OpenAI rejected the offer, with Chair Bret Taylor posting on Friday that OpenAI is not for sale.

Musk's xAI in talks to raise $10 billion at $75 billion valuation, Bloomberg News reports

Feb 14 (Reuters) - Elon Musk's xAI is discussing to raise $10 billion that could value the artificial intelligence startup at about $75 billion, Bloomberg News reported on Friday, citing a person familiar with the matter. Existing investors, including Sequoia Capital, Andreessen Horowitz and Valor Equity Partners are in talks to participate in the transaction, the report said. XAI, Valor Equity Partners, Sequoia Capital and Andreessen Horowitz did not immediately respond to Reuters' requests for comment. The billionaire's startup recently raised $6 billion from investors at a valuation of $40 billion, sources have told Reuters. XAI is looking to increase its footprint in the AI industry by expanding its capacity of data centers to train AI models. Musk said on Thursday ChatGPT challenger, Grok 3, is in the final stages of development and would be released in about a week or two. "Grok 3 has very powerful reasoning capabilities, so in the tests that we've done thus far, Grok 3 is outperforming anything that's been released, that we're aware of, so that's a good sign," he said in a video call addressing the World Governments Summit in Dubai. Musk, who launched xAI in 2023, has sued ChatGPT-maker OpenAI to block its conversion to a public benefit corporation. Earlier this week, a consortium led by the world's richest person made an offer of $97.4 billion to buy the nonprofit that controls OpenAI. Separately, Dell is nearing a deal to sell more than $5 billion in AI servers to xAI, Bloomberg News reported on Friday, adding that the servers would contain Nvidia's (NVDA.O), opens new tab GB200 chips to be delivered this year. Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Elon Musk's AI company, xAI, said to be in talks to raise $10B | TechCrunch

Elon Musk's AI company, xAI, is said to be in talks to raise $10 billion in a round that would value xAI at $75 billion. Bloomberg reported Friday that xAI is canvassing existing investors, including Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners for the round, which would bring xAI's total raised to $22.4 billion, according to Crunchbase. Bloomberg also noted that discussions are ongoing and that the terms of the fundraising round may change. The potential new injection of capital comes as xAI reportedly weighs buying more than $5 billion worth of servers from Dell to support the development of its AI technologies, including its Grok models. Grok powers a growing number of features on Elon Musk's X social network, including summaries of trending discussions. The next major version of Grok, Grok 3, is set to be released in the next several weeks, Musk said in a live-streamed appearance at a Dubai technology conference this week.

Musk's xAI Discussing $10 Billion Raise at $75 Billion Valuation

Elon Musk's artificial intelligence company xAI is canvassing potential investors for a roughly $10 billion funding round that would value the company at about $75 billion, according to a person with knowledge of the matter. Existing investors including Sequoia Capital, Andreessen Horowitz and Valor Equity Partners are in talks to participate in the transaction, said the person, who asked not to be identified discussing private information. Terms of the round aren't finalized and could still change.

Musk's xAI discussing $16b raise at $118b valuation

Gift 5 articles to anyone you choose each month when you subscribe. Elon Musk's artificial intelligence company xAI is canvassing potential investors for a roughly $US10 billion ($16 billion) funding round that would value the company at about $US75 billion, according to a person with knowledge of the matter. Existing investors including Sequoia Capital, Andreessen Horowitz and Valor Equity Partners are in talks to participate in the transaction, said the person, who asked not to be identified discussing private information. Terms of the round aren't finalised and could still change.