Elon Musk’s AI start-up in talks to raise $6bn, FT says
The company has been in talks with family offices in Hong Kong and is targeting sovereign wealth funds in the Middle East, the FT reports
26 January 2024 - 12:25
by Agency Staff
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Elon Musk’s artificial intelligence start-up xAI is in talks to raise up to $6bn from global investors, the Financial Times reported on Friday, citing multiple people familiar with the matter.
The fundraise could value xAI at up to $20bn, according to the report.
Thanks to the popularity of OpenAI’s chatbot ChatGPT, the AI industry has been a rare bright spot in a subdued start-up funding environment.
Google-backed Anthropic and Microsoft-backed Inflection AI have also raised funds in recent months.
Musk’s AI start-up has been in talks with family offices in Hong Kong and is targeting sovereign wealth funds in the Middle East, the Financial Times reported.
Musk has also approached investors in Japan and South Korea, the report said. Musk’s office did not immediately respond to a Reuters request for comment.
The billionaire CEO of Tesla has been vocal about his plans to build safer AI. Last year, the start-up xAI launched “Grok”, a chatbot rivalling ChatGPT.
Last month, xAI filed with the US Securities and Exchange Commission to raise up to $1bn in an equity offering.
Musk warned about developing AI and robotics outside Tesla, earlier this month, unless he gets more voting control at the electric-vehicle maker. He said he would be uncomfortable building Tesla into an AI leader unless he had 25% voting control.
Last week, Musk denied a report that xAI had secured $500m in commitments from investors towards a $1bn funding goal.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Elon Musk’s AI start-up in talks to raise $6bn, FT says
The company has been in talks with family offices in Hong Kong and is targeting sovereign wealth funds in the Middle East, the FT reports
Elon Musk’s artificial intelligence start-up xAI is in talks to raise up to $6bn from global investors, the Financial Times reported on Friday, citing multiple people familiar with the matter.
The fundraise could value xAI at up to $20bn, according to the report.
Thanks to the popularity of OpenAI’s chatbot ChatGPT, the AI industry has been a rare bright spot in a subdued start-up funding environment.
Google-backed Anthropic and Microsoft-backed Inflection AI have also raised funds in recent months.
Musk’s AI start-up has been in talks with family offices in Hong Kong and is targeting sovereign wealth funds in the Middle East, the Financial Times reported.
Musk has also approached investors in Japan and South Korea, the report said. Musk’s office did not immediately respond to a Reuters request for comment.
The billionaire CEO of Tesla has been vocal about his plans to build safer AI. Last year, the start-up xAI launched “Grok”, a chatbot rivalling ChatGPT.
Last month, xAI filed with the US Securities and Exchange Commission to raise up to $1bn in an equity offering.
Musk warned about developing AI and robotics outside Tesla, earlier this month, unless he gets more voting control at the electric-vehicle maker. He said he would be uncomfortable building Tesla into an AI leader unless he had 25% voting control.
Last week, Musk denied a report that xAI had secured $500m in commitments from investors towards a $1bn funding goal.
Reuters
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