Elon Musk’s artificial intelligence startup X.AI Corp. is very close to reaching an agreement to raise $6 billion in a funding round that would value the business at $18 billion, claims a person familiar with the subject.
Sequoia Capital and Future Ventures, the venture capital firm founded by Musk’s buddy and SpaceX board member Steve Jurvetson, will participate in the investment round.
It is anticipated that the purchase will conclude in the upcoming weeks. Gigafund and Valor Equity Partners, two other participants, are also a member of Musk’s inner circle.
As per the earlier report, the business had been in talks to raise $3 billion to $4 billion in the deal as it looks to compete with significant players in AI, like OpenAI, In recent years. Musk, an original member of OpenAI, has had a tense relationship with the startup.Â
According to reports, Musk proposed a structure in which all of his businesses operate as a network to raise money. All of Musk’s businesses are connected, according to a TechCrunch story. For example, training data is gathered from Tesla, SpaceX, Neuralink, and the Boring Company, and the microblogging platform X has already put xAI’s chatbot, Grok, on the site for premium X users.
Using data from other businesses, Grok will develop further and could be useful for Tesla’s self-driving cars, which use a combination of artificial intelligence technology and the humanoid robot called Optimus.
Since X also has equity in xAI, the social media platform would benefit naturally from the AI startup’s expansion.
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