Elon Musk's xAI is looking for up to $4bn to compete with OpenAI

Elon Musk's AI startup xAI wants to raise between $3bn and $4bn in a deal that would value the company at $18bn, according to materials sent to investors.

Here's What We Know

Emails with about a 20-page pitch deck have been circulating among Silicon Valley venture capitalists, one person told Bloomberg. People close to Musk have had preliminary conversations to gauge investor interest in participating in the deal.

That said, the terms and valuation of the round are still under discussion and could change. Earlier, some details of this potential deal were reported by the Wall Street Journal.

The pitch to investors emphasises the benefits to investors. Among them is Musk's track record at Tesla and SpaceX. In addition, the document describes that xAI models will be able to train on information from the X social network.

Access to high-quality data is crucial for building large language models. It is in this area that xAI intends to compete with well-funded companies such as OpenAI.

A spokesperson for xAI declined to comment.

Source: Bloomberg