In an unprecedented turn of events, Elon Musk’s xAI is reportedly eyeing a $3 billion investment, as investors close to Musk are immersing in talks surrounding the investment, per a report by the Wall Street Journal. This investment, aimed at pushing the company’s value to $18 billion, will further position Musk’s generative AI as a noteworthy rival to AI pioneers OpenAI and Google.

The Tesla & SpaceX founder initially introduced xAI, a generative AI model, in 2023, boasting it to be a state-of-the-art platform that levels up the game. Meanwhile, although reports claimed that investors close to Musk were in talks eyeing a $3 billion investment in xAI, an official statement about investment plans is yet to be released, with speculations of a possible change surfacing across the AI landscape.

Nonetheless, should the firm secure a $3 billion investment, xAI is expected to further anchor its footing in the generative AI industry.

A Closer Look Into The Report

Notably, venture capital firm Gigafund and Steve Jurvetson are among the backers that are eyeing investments, Wall Street’s report proclaimed, quoting sources familiar with the matter. In addition to this, the report added that a co-founder of another venture firm partook in talks surrounding the investment in xAI. However, the identity wasn’t revealed.

In the interim, the terms of the xAI fundraising chronicle remain unsettled, with the possibility of changes ahead, as mentioned above. Concerning this, attempts to reach out to xAI for comments on the matter were unsuccessful. Further, there was no immediate response from Musk’s office to a request for comment on the matter, further shrouding the investment plans in a cloud of an enigma.

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Musk’s Statements Spark Speculation

Earlier this year, Elon Musk revealed that xAI was not actively engaged in discussions with investors to raise capital, countering speculation over the startup’s potential fundraising chronicles. This declaration came after a January report by The Financial Times surfaced, hinting that xAI was in talks to secure funding with a valuation of $20 billion.

Concerning this, Musk earlier stated, “xAI is not raising capital, and I have had no conversations with anyone in this regard.” This collectively paints an unsure scenario of why investors might be in talks to raise additional capital for xAI, as mentioned above.

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The post Elon Musk’s xAI: Investors Eye $3 Bln Fund Injection, What’s Happening? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am