- Elon Musk’s AI startup, xAI, is seeking to raise nearly $6 billion in a new funding round backed by Silicon Valley giants.
- Silicon Valley investors, including Andreessen Horowitz, Sequoia Capital, and Tribe Capital, are supporting this investment round.
- The competition in the AI sector is intensifying, with significant investments pouring into startups aiming to rival market leaders like OpenAI.
Elon Musk’s artificial intelligence startup, xAI, is aiming to raise nearly $6 billion in a funding round. The round includes major Silicon Valley investors such as Andreessen Horowitz, Sequoia Capital, and Tribe Capital, valuing the company at $18 billion.
xAI targets $6 billion in funding
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Elon Musk’s artificial intelligence startup, xAI, is aiming to secure close to $6 billion in its latest funding round. The Financial Times reported on Thursday that this round is supported by significant Silicon Valley investors, including Andreessen Horowitz. The round also includes commitments from Sequoia Capital and Tribe Capital, sources familiar with the negotiations revealed. This influx of capital would value xAI at approximately $18 billion.
Intensifying AI competition
The competition in the AI sector is intensifying, with significant investments pouring into startups aiming to rival market leaders like OpenAI. In the first quarter of this year, AI startups raised $19.15 billion in venture capital funding, up from $16.36 billion in the same period last year, according to data from PitchBook.
Previous funding denials
Earlier this year, Musk had denied reports that xAI was seeking new funding. Despite this, representatives of Musk and the involved investment firms did not immediately respond to the requests for comment on the current funding efforts.
