- Elon Musk’s AI venture xAI set to raise $6 billion at $18 billion valuation.
- Investors include firms closely tied to Musk’s companies like SpaceX and Tesla.
- X (formerly Twitter) holds stake in xAI, integrating its Grok chatbot.
Raining cats and billions
Elon Musk’s 10-month-old AI venture, xAI, is poised to raise a staggering $6 billion at an $18 billion pre-money valuation. The deal, expected to close within weeks, grants investors one-quarter ownership, unless terms change again.
Several high-profile investors, including Sequoia Capital, Future Ventures, Valor Equity Partners, and Gigafund, are participating in the round. These firms boast deep ties to Musk’s inner circle and companies like SpaceX and Tesla.
X marks the spot: a stake in the AI games
xAI’s ambition is to connect the digital and physical realms by leveraging training data from Musk’s companies, including Tesla, SpaceX, The Boring Company, and Neuralink. Its chatbot, Grok, already integrated into X, offers a glimpse into this audacious vision.
In a strategic move, X (formerly Twitter) not only serves as a customer and distribution channel for Grok but also holds a stake in xAI.
As xAI’s momentum builds, X stands to benefit from the upside, potentially reviving the platform’s fortunes under Musk’s ownership.
