Elon Musk's xAI close to securing $6 billion funding

Elon Musk's xAI close to securing $6 billion funding
26 Apr 2024

Elon Musk's artificial intelligence venture, xAI, is close to securing a massive $6 billion in funding, according to TechCrunch.

The publication cited an insider source familiar with the deal, who revealed that the funding round is based on a pre-money valuation of $18 billion.

The agreement would give investors around 25% stake in the company and is expected to be finalized in the coming weeks.

Funding deal terms revised once already
Deal revision

The terms of the funding deal have been revised once already, according to the report.

Initially, Jared Birchall, who manages Musk's family office, had communicated a target of $3 billion at a $15 billion pre-money valuation. However, due to high investor interest, these figures were quickly updated.

"We all received an email that basically said, it's now $6B on $18B, and don't complain because a lot of other people want in," reported TechCrunch, quoting the insider.

Sequoia Capital, Future Ventures to participate in funding round
Investor participation

As per the source, investors who have been advocating to be part of the deal for months hardly minded.

Prominent investors such as Sequoia Capital and Future Ventures are participating in this funding round for Musk's xAI.

Future Ventures was co-founded by Steve Jurvetson, a close associate of Musk.

Other potential contributors include Valor Equity Partners and Gigafund, both of which were established by members of Musk's trusted circle.

xAI aims to bridge digital and physical realms
Company mission

xAI aims to bridge the digital and physical realms by leveraging training data from each of Musk's ventures, including Tesla, The Boring Company, SpaceX, and Neuralink.

The social media platform X has already integrated xAI's chatbot Grok-1 as a premium feature.

This integration aligns with Musk's vision of creating a feedback loop where Grok-1 will process data from his other enterprises.