Prime Highlights:
- Elon Musk’s AI company xAI is reportedly seeking $15 billion in its latest funding round to support growth and technology development.
- xAI continues expanding its ecosystem, including its chatbot Grok, the Grokipedia platform, and integration with Tesla vehicles.
Key Facts:
- The funding round follows a previous $10 billion round, valuing xAI at around $200 billion.
- xAI recently acquired social media platform X and continues partnerships with Tesla, including battery storage systems for its data centers.
Background:
Elon Musk’s artificial intelligence company, xAI, is reportedly planning to raise $15 billion in its latest funding round. This new round would add $5 billion to the $10 billion reported in September, when the startup was valued at $200 billion.
A large part of the funds will be used to buy powerful computer hardware to support advanced software systems. Tech startups have been raising large amounts of money recently, with companies like Anthropic and OpenAI securing major funding.
xAI is expanding its products, including the chatbot Grok and the online encyclopedia Grokipedia. The company also acquired social media platform X earlier this year in an all-stock deal valued at $33 billion.
The company has close business ties with Tesla, Musk’s electric vehicle maker. Recent Tesla models include Grok in their infotainment systems, and xAI has purchased Tesla’s battery energy storage systems for use in its data centers in Memphis.
At Tesla’s annual shareholder meeting last week, investors approved a CEO pay plan for Musk, potentially worth around $1 trillion over the next decade, depending on company milestones. A shareholder proposal to allow Tesla to invest directly in xAI did not receive enough votes to proceed. Tesla’s general counsel, Brandon Ehrhart, said the company is considering its next steps on a possible investment in xAI.
As tech startups continue to attract large investments and grow quickly, xAI is establishing itself as a key player, offering advanced products and forming strategic business partnerships.
