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Elon Musk new Artificial Intelligence project is seeking investors.
xAI (private) plans to raise $3 billion from investors.
That would give Elon’s new startup a valuation of $18 billion.
xAI launched in July of 2023. By November the company released its chatbot called Grok. It’s available to subscribers on the Twitter / X platform.
The fundraising effort would beef up the balance sheet for xAI. Thus far the company has only been funded by Elon.
Two existing Elon Musk backers are said to be considering the investment, according to the Wall Street Journal.
Gigafund and noted venture capitalist Steve Jurvetson have been involved with SpaceX and Tesla. And now they’re considering investing in xAI.
xAI wants to be competitive with other large language models including OpenAI’s ChatGPT and Anthropic’s Claude.
OpenAI raised $13 billion from Microsoft (NASDAQ: MSFT). And Anthropic raised $6 billion from Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG).
Elon appears to be spending considerable amounts of time involved with this new AI startup.
xAI benefits from Elon’s ownership of Twitter.
The relationship allows xAI to use Twitter’s vast amounts of content for training its large language model. At the same time Twitter has not allowed its data to be used by ChatGPT and other chatbots.
AI startups are in a race for funding in order to secure talent and chips from Nvidia (NASDAQ: NVDA).
This funding round would help secure xAI as a serious contender among the chatbots.
So, what’s the best way to profit from Elon’s newest AI venture?
Ian Wyatt