This move was a way to offset losses from the decline in value after the $44 billion acquisition of Twitter (now X.com).
Created to compete with OpenAI and Anthropic, xAI plans to close a $5 billion funding round and double the company’s valuation to $50 billion in six months.
Investors who have taken a stake in XAI include Fidelity, Larry Ellison, Jack Dorsey, Prince Alwaleed bin Talal, as well as Sequoia Capital and Andreessen Horowitz.
Since acquiring Twitter, its valuation has fallen 80%, forcing Musk to look for ways to support loyal investors.
Their share of XAI will not be reduced by new funding rounds.
These measures also aim to cover the costs of xAI, including the development of artificial intelligence and the creation of one of the largest supercomputing clusters.
Source: Ferra
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