Musk found $6bn investment for xAI, startup valued at $18bn - TechCrunch

Artificial intelligence startup xAI, owned by Elon Musk, has agreed to raise $6bn in investment. The company's preliminary valuation was $18bn.

Here's What We Know

According to TechCrunch, xAI initially planned to raise $3bn at a valuation of $15bn. However, due to strong investor demand, the terms were quickly revised upwards.

Sequoia Capital, Future Ventures, a venture capital fund founded by Musk's friend Steve Jurvetson, as well as Valor Equity Partners and Gigafund, whose founders are part of the billionaire's inner circle, will participate in the funding round.

Jurvetson is a member of SpaceX's board of directors and previously served on Tesla's board. Gigafund's Luke Nosek was an early investor in SpaceX and is on the company's board. Valor's Antonio Gracias is one of Tesla's first investors and an ex-director, also on SpaceX's board.

The exact list of participants is not yet known due to the closed nature of the talks. Sources say potential investors have been invited to video calls with Musk and xAI employees.

If the talks go well, the deal to raise $6bn at a valuation of $18bn will close in the coming weeks.

Source: TechCrunch