Elon Musk is seeking to fund up to $6 billion for his AI business
According to reports, Elon Musk's AI business xAI is looking for $6 billion in capital, with a possible $20 billion value. The business filed for a $1 billion stock offering recently and faces competition from OpenAI's ChatGPT.
According to various sources familiar with the situation, Elon Musk's artificial intelligence start-company xAI is in discussions to raise up to $6 billion from worldwide investors. This information was revealed by the Financial Times on Friday.
The article claims that the funding might be worth up to $20 billion for xAI.
The AI sector has emerged as a rare bright light in the otherwise unfavorable start-up financing landscape, mostly due to the widespread use of OpenAI's chatbot, ChatGPT.
Anthropic, supported by Google, and Inflection AI, supported by Microsoft, have both received money recently.
According to the Financial Times, Musk's AI business is targeting sovereign wealth funds in the Middle East and is in negotiations with family offices in Hong Kong.
According to the article, Musk has also reached out to investors in South Korea and Japan. A Reuters request for comment was not immediately answered by Musk's office.
The wealthy CEO of Tesla has made no secret of his intentions to develop safer AI. To rival ChatGPT, start-up xAI introduced "Grok," a chatbot, last year.
In an attempt to fund up to $1 billion via a stock offering, xAI submitted a filing with the US Securities and Exchange Commission last month.
Musk threatened to create robots and artificial intelligence outside of Tesla earlier this month if he didn't get greater voting power at the electric car manufacturer. He said that until he had 25% vote power, he would feel uneasy appointing Tesla as an AI leader.
In response to a story published last week, Musk said xAI has received $500 million in pledges from investors toward its $1 billion financing goal.
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