Elon Musk’s AI start-up xAI entered into talks with investors for a new round of funding. The cash injection would value the company at $40 billion, after previously raising $6 billion.
The Wall Street Journal (WSJ) reported the funding discussions are in the early stages but there is no certainty the new investment will take place. The company’s valuation hit $24 billion after the previous funding round, WSJ reported, but the latest move would make xAI one of the most valuable start-ups in the US.
xAI was founded in 2023 and made strides in generative AI, launching the Grok chatbot as a direct competitor to OpenAI’s ChatGPT. The model has been trained and integrated with Musk’s social media company X and is available to the company’s premium subscribers.
As one of the co-founders of OpenAI, Musk has a history of AI development, but the Financial Times noted he stepped down from the board in 2018 after alleged clashes with management on its approach to safety. OpenAI closed a funding round at a valuation of $157 billion last month.
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