Musk’s xAI is raising $6 billion from Sequoia and others

Musk's xAI is raising $6 billion from Sequoia and others

Elon Musk’s AI startup xAI is in the process of raising $6 billion at a valuation of $18 billion, as reported by The Information. This funding round is set to include investment from Sequoia Capital and Future Ventures, a venture capital fund founded by Musk’s friend and SpaceX board member, Steve Jurvetson. The deal is anticipated to be finalized within the coming weeks, with additional participation from Valor Equity Partners and Gigafund, both of which are part of Musk’s inner circle.

Musk has reportedly proposed a system for the fundraising where all his companies operate as an interconnected network. A TechCrunch report has unveiled that Musk’s various enterprises are linked together, with training data sourced from Tesla, SpaceX, Neuralink, and The Boring Company. Furthermore, the microblogging platform X has already integrated xAI’s chatbot, Grok, for its premium users. Grok will leverage data from these companies to enhance its capabilities and potentially contribute to Tesla’s self-driving technology and the humanoid robot, Optimus, currently under development by Tesla.

Additionally, X holds a stake in xAI, meaning that xAI’s growth would directly benefit the social media platform.

Just last month, Musk made xAI’s latest AI chatbot, Grok-1, open-source. Musk’s public rivalry with OpenAI has been ongoing, culminating in Musk suing OpenAI CEO Sam Altman over what he perceived as a betrayal of the AI firm’s original non-profit mission.

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