Elon Musk’s xAI doubles valuation after $5 billion funding round
Elon Musk’s AI startup xAI has reportedly reached a $50 billion valuation, following a funding round that secured $5 billion for the company.
As reported in the Wall Street Journal, the most recent financial backing brings the total amount raised by xAI this year to $11 billion, with several prominent participants including the Qatar Investment Authority, Andreessen Horowitz, Valor Equity Partners, and Sequoia Capital.
The $50 billion valuation doubles the firm’s previous status, estimated at $24 billion after the $6 billion funding round in spring.
xAI is said to be intent on acquiring a further 100,000 Nvidia chips to evolve the training of its AI models.
The continued rise of xAI and the significant, fresh valuation of $50 billion surpasses the $44 billion Musk shelled out to acquire the former Twitter social platform in October 2022. Much has changed on the platform in line with the Tesla chief’s vision, but Fidelity returned a valuation of just $9.4 billion in September.
The analysis of the asset management house struck down the value of its $19.6 million investment in X by almost 79%.
We are excited to bring together a group of exceptional engineers and product builders who are intrigued by our mission to build maximally truth-seeking AI
Join our open house to meet our team, learn more about xAI, and enjoy a fun evening brought you by the creators of the… pic.twitter.com/uskAlLOyER
— xAI (@xai) September 27, 2024
Musk lawsuit extended to include MicrosoftxAI was initiated by Musk as a vehicle to compete with OpenAI, the artificial intelligence leader he co-founded with Sam Altman in 2015. Since going their separate ways four years later, a bitter, protracted feud has ensued, with repeated public spats and legal suits.
Musk has been overtly critical of OpenAI’s shift away from its initial non-profit ethos, accusing Altman and the company of acting “illegally”.
This week, a string of emails was revealed, providing a glimpse into the fledgling stages of the ChatGPT maker, as part of Musk’s assertion the company is violating antitrust laws.
Last Thursday (Nov. 21), the lawsuit was extended to include Microsoft as a defendant, with both entities accused of pursuing an AI monopoly and engaging in “intensified” anti-competitive behavior.
Image credit: Via Midjourney
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