- Musk’s AI startup xAI seeks $6 billion in funding to compete with OpenAI.
- The ambitious push shows Musk’s determination to scale xAI rapidly.
- Intense focus on his fledgling firm signals his goal to lead the AI space regardless of OpenAI’s advantages.
Elon Musk’s fledgling AI startup xAI is reportedly aiming to raise $6 billion in new funding as it continues efforts to compete with OpenAI. According to a Financial Times report, xAI is in discussions targeting a $20 billion valuation in an ambitious fundraising push.
A $1bn fundraise goal
The company is said to be meeting with Hong Kong investors while also speaking to backers in the Middle East. Morgan Stanley is supposedly leading the latest financing bid.
Just last week, Bloomberg stated xAI had secured $500 million toward a $1 billion goal, which Musk denied as “fake news.”
A determined Elon
The sizable war chest signals Musk’s determination to scale xAI rapidly less than a year since its founding. While his startup launched the Grok chatbot in 2023, industry leader OpenAI boasts substantial advantages, including potential $100 billion-plus valuations on the heels of ChatGPT’s breakout success.
Musk also appears to be diverting AI resources from Tesla, reportedly telling its board he will curb development there without 25% voting control.
His intense focus on xAI underscores ambitions to compete at the cutting edge of artificial intelligence regardless of obstacles.
