Elon Musk’s xAI Looks to Raise New Funds, Aiming for $40B Valuation

Elon Musk’s AI firm, xAI, is seeking new funding at a potential $40 billion valuation, nearly doubling its previous post-money valuation of $24 billion. The goal of this funding is to enhance the $6 billion Series B round that xAI successfully completed in May.

The WSJ says that Elon Musk’s AI company, xAI, is in talks to raise more money at a valuation of around $40 billion. This round is raising a significant amount of money for xAI. It wants to add to the $6 billion it raised in May for Series B funding. The rumored value would be almost twice as high as xAI’s current post-money value of $24 billion.

Musk set up xAI last year. Soon after, the company, which had recently relocated to OpenAI’s old offices, developed its first model, Grok, which powers various parts of Musk’s social network, X.

XAI now has an API for businesses. The company also reports that a large cluster of 100,000 Nvidia GPUs is training the next generation of Grok models. Musk often says that X’s data gives XAI a big advantage over competitors. This month, X changed its privacy rules so that outside groups, like XAI, can use X posts to train their models.