Elon Musk’s Startup xAI Plans To Raise $3 Bn: Report

Billionaire Elon Musk’s AI startup xAI is reportedly planning to raise USD 3 billion funds in a round that would value the company at USD 18 billion, according to a media report on Saturday.

This effort of the company has seen interest come from several venture capital firms such as Gigafund and Steve Jurvetson, which are considering backing the AI company.

While the fundraising has garnered global attention, the terms and conditions of the backing are yet to be finalised and are expected to change until the final decision is made.

xAI has not officially confirmed about the fundraising. However, earlier this year, there were reports about the company’s interest in raising about USD 20 billion. Nevertheless, Musk had denied the news at the time.

Musk established xAI in July 2023, after indicating his intention to develop a rival to the widely used ChatGPT for months. He was instrumental in founding OpenAI, the company behind the chatbot, but had a falling out with other executives at the company.