Elon Musk has rejected reports that his artificial intelligence venture, xAI, is gearing up for a new fundraising round. A recent report suggested that the company is looking at a funding round that could value the company between $170 billion and $200 billion.
What Happened
The report mentioned that Saudi Arabia’s Public Investment Fund (PIF) was expected to play a crucial role in this deal. PIF already has an indirect stake in xAI through its investment in Kingdom Holdings Company, which has committed $800 million to the firm. However, Musk commented that xAI is not seeking funding right now, stating, “We have plenty of capital.”
Recent Developments
In late June, Morgan Stanley disclosed that xAI had completed a $5 billion debt raise and a separate $5 billion strategic equity investment. This move is part of the startup’s strategy to enhance its AI infrastructure through data centers amid increasing competition. Additionally, xAI acquired Musk’s social media platform, X, formerly known as Twitter, valuing xAI at $80 billion.
Why It Matters
The potential valuation of xAI at up to $200 billion highlights the company’s rapid growth and ambition in the AI sector. Recently, xAI launched Grok 4, touted as the world’s most powerful AI model, surpassing competitors like OpenAI’s ChatGPT and Google’s Gemini. Musk also announced that Grok 4 will soon be integrated into Tesla Inc. vehicles, further expanding its applications.
Expanding the Team
Musk’s xAI had recently hired Katie Miller, wife of President Donald Trump‘s Deputy Chief of Staff Stephen Miller, as a communications manager.
Conclusion
In conclusion, Elon Musk’s denial of xAI’s plans for a $200 billion funding round comes as the company continues to grow and expand its presence in the AI sector. With its recent launches and acquisitions, xAI is poised to become a major player in the industry.