Elon Musk's artificial intelligence startup, xAI, is reportedly seeking a new round of funding that could raise its valuation to approximately $40 billion. Sources indicate that the funding talks are still in early stages and details may change, including the possibility of negotiations falling through.
In May, xAI successfully raised $6 billion in its Series B funding round, although the company's valuation at that time was not disclosed. However, reports suggested it was around $24 billion. If the new funding round is successful, xAI would increase its valuation by over 60% in less than six months, positioning it among the most valuable startups in the United States.
According to CB Insights, only seven unicorns currently have a valuation exceeding $40 billion. Among them is Musk's other startup, SpaceX, valued at $200 billion, and OpenAI, a competitor he co-founded, which is valued at $157 billion.
Founded in July 2023, xAI is less than 16 months old, and its generative AI chatbot, Grok, is not yet a year old. Musk recently mentioned at the Future Investment Initiative conference in Riyadh that he aims to double xAI's computing power. Previously, xAI completed the construction of a supercomputer in Memphis, which Musk claims is the most extensive data center in its field.
Musk commented, "We have built the world's most powerful training cluster for xAI, and we are about to double it." On AI, Musk noted that the technology is advancing at a rate of "ten times better" each year and predicted that AI could replicate all human capabilities within two years. He also highlighted a 10%-20% chance that AI could pose a significant existential threat, which motivated the founding of xAI—to ensure AI acts in humanity's best interest.
