Elon Musk’s xAI Seeks $300M in New Funding Round
▼ Summary
– Elon Musk’s AI startup, xAI, is launching a $300 million share sale, valuing the company at $113 billion.
– The secondary stock offering allows xAI staff to sell shares to new investors following its acquisition of X for $33 billion.
– The tender offer is expected to precede a larger investment round where xAI will offer new equity to outside backers.
– Musk is shifting focus from politics back to his companies, which have struggled during his time in Washington.
– Tesla’s shares hit a six-month low, X faced outages, and xAI missed deadlines to upgrade its AI model, Grok.
Elon Musk’s artificial intelligence venture xAI is reportedly pursuing a $300 million funding round, with the company valued at a staggering $113 billion. This latest financial move follows xAI’s high-profile acquisition of social media platform X (formerly Twitter) for $33 billion last year.
The current share sale represents a secondary offering, enabling existing employees to sell their stakes to new investors. Industry analysts suggest this tender offer may pave the way for a more substantial funding initiative where xAI would issue fresh equity to external investors.
The fundraising effort comes at a pivotal moment for Musk’s business empire. His various companies have faced challenges while the billionaire divided his attention between corporate leadership and political engagements. Tesla’s stock recently plunged to its lowest point in half a year, while platform X has struggled with persistent technical issues and service disruptions.
xAI itself has encountered setbacks, repeatedly delaying promised upgrades to its signature AI system, Grok. The company’s ambitious valuation reflects investor confidence in Musk’s track record of disruptive innovation, despite these operational hurdles. Market observers will be watching closely to see whether this injection of capital can help stabilize Musk’s technology portfolio and accelerate xAI’s product roadmap.
(Source: TechCrunch)
