US EditionElon Musk’s xAI Seeks $4.3 Billion in Fresh Equity Funding: Report
- Elon Musk’s AI company xAI, founded in 2023, is aiming to raise $4.3 billion in new equity alongside an ongoing $5 billion debt sale.
- The funding need stems from high costs building AI systems, including expensive hardware, massive compute, and competition for talent.
- XAI secured $14 billion through equity financing before launching its current debt offering, has spent the majority of those funds, and had a remaining balance of $4 billion as of March 31.
- The company purchased Musk’s platform X during the current year, and by the end of the first quarter, its valuation increased to $80 billion, indicating strong investor confidence.
- If successful, the financing will support xAI’s AI operations, ease cost pressures from a $650 million manufacturer rebate, and position it to compete with OpenAI and others.
26 Articles
26 Articles
Elon Musk's artificial intelligence startup, xAI, is in negotiations to raise $4.3 billion through a capital investment, in addition to $5 billion that it has tried to obtain in debt recently, according to information that the company has shared with investors that asked not to be identified for being private data.Musk's company, responsible for the Grok chatbot, needs this new financing, in part, because it has already spent most of what it col…
The Mercury news
siliconvalley.comMusk’s xAI in talks to raise $4.3 billion in equity funding
(Bloomberg/Carmen Arroyo and Jill R. Shah) — Elon Musk’s artificial intelligence startup xAI is in talks to raise $4.3 billion through an equity investment on top of the $5 billion it has recently been trying to borrow from debt investors, according to information the company shared with investors who asked not to be identified because it is private. Musk’s company, which is responsible for the AI chatbot Grok, needs the new money, in part, beca…
Elon Musk’s AI startup xAI in talks to raise $4.3B in equity funding on top of $5B debt deal amid soaring AI costs - Tech Startups
Just weeks after reports surfaced that Elon Musk’s xAI was looking to raise $20 billion at a $120 billion valuation, the startup is back in the headlines with another funding push. This time, it’s eyeing a $4.3 billion equity investment, […] The post Elon Musk’s AI startup xAI in talks to raise $4.3B in equity funding on top of $5B debt deal amid soaring AI costs first appeared on Tech Startups.
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