There have been reports of Elon Musk looking to raise up to $6 billion in capital for his xAI startup, but these claims have been denied by the billionaire himself. Musk says that “xAI is not raising capital and I have had no conversations with anyone in this regard.”
The original report of Elon Musk looking to raise $6 billion for xAI came from the Financial Times. The story also mentioned how Musk has denied numerous recent reports claiming that xAI is in the active pursuit of capital.
Reports from the Financial Times shed light on Elon Musk’s venture, xAI, engaging in discussions to secure a substantial funding injection. The prospective investors reportedly encompass a global spectrum, including family offices situated in Hong Kong. This move underscores xAI’s ambitious mission to position itself as a formidable contender in the competitive landscape of AI, rivaling giants such as Microsoft and OpenAI.
Insiders privy to the negotiations, cited by three trusted sources associated with the Financial Times, have emphasized that these discussions are an ongoing process, characterized by a degree of fluidity where terms and arrangements remain subject to potential revisions.
Elon Musk is reportedly pursuing a valuation of $20 billion for the venture. In this endeavor, Musk is not limiting his outreach, as he extends his reach to sovereign wealth funds located in the Middle East, as well as prospective investors hailing from Japan and South Korea.
Facilitating these maneuvers, Morgan Stanley is purportedly assuming the pivotal role of coordinating the fundraising efforts, although the bank has refrained from issuing any official commentary on the matter.
The high-stakes landscape of artificial intelligence investments has been defined by staggering figures, with OpenAI emerging as a prominent beneficiary of this financial fervor. The AI startup has managed to secure an eye-popping $13 billion in funding, with the lion’s share originating from a significant partnership with tech behemoth Microsoft. This substantial infusion of capital has propelled OpenAI into the spotlight, firmly establishing it as a dominant force in the AI arena.
Meanwhile, another major player in the large language model (LLM) startup ecosystem, Anthropic, has managed to amass an impressive $6 billion in funding, thanks to robust support from industry giants Google and Amazon.