Venture Capital Heavyweights Reportedly in Talks to Back Artificial Intelligence Startup
Elon Musk’s artificial-intelligence venture, xAI, is reportedly in discussions with investors to secure a $3 billion funding round, with a projected valuation of $18 billion, according to a report by the Wall Street Journal published on Friday.
Among the potential backers are venture capital firm Gigafund and prominent investor Steve Jurvetson, as per sources familiar with the matter cited by the report. Additionally, a co-founder of another venture firm is said to be considering participation in the funding round, although neither the individual nor the firm was named in the report.
While the terms of the fundraising are yet to be finalized, the Journal notes that discussions have gained momentum in recent times, signaling significant interest from investors in supporting xAI’s growth trajectory.
xAI, founded by Elon Musk as an alternative to industry giants like Microsoft-backed OpenAI and Alphabet’s Google, aims to push the boundaries of artificial intelligence innovation.
Earlier this year, Musk denied reports suggesting xAI’s pursuit of funding, contradicting media speculation that the startup was aiming to raise up to $6 billion. In January, the Financial Times reported that xAI was exploring funding opportunities with a targeted valuation of $20 billion, a figure Musk refuted at the time.
Despite the apparent funding talks, xAI has been actively advancing its technology. In March, the company unveiled an enhanced version of its chatbot, Grok-1.5, positioning it as a rival to OpenAI’s ChatGPT. The chatbot, available to select users of X (formerly known as Twitter), underscores xAI’s commitment to developing cutting-edge AI solutions.
As xAI navigates discussions with potential investors and continues to innovate in the AI space, its progress underscores the growing interest and investment in artificial intelligence startups seeking to disrupt the tech landscape.
