Elon Musk's AI startup, x.AI Corp, is planning to raise $3-4 billion funding with an $18 billion valuation as the company faces challenges in its EV venture
Elon Musk's EV segment might be facing challenges, but his emerging AI startup, x.AI Corp, is seeking to raise between $3 billion- $4 billion in funding. The proposed deal would assign a valuation of $18 billion to the company, as outlined in documents circulated to investors.
As per a report by Bloomberg, emails are making rounds among Silicon Valley's investors, discussing the potential financing round for x.AI Corp, along with a pitch deck spanning around 20 pages.
This news comes amidst a tough stretch for Elon Musk's electric vehicle venture. Demand for EVs has dropped significantly, especially in key markets like China, which is facing economic pressure. Adding to the strain is Tesla's stock price which has lost more than a quarter of its value since the inception of this year.
The pitch deck lays out points for potential investors by highlighting Elon Musk's past record with Tesla Inc. and Space Exploration Technologies Corp. As per sources cited in the report, the deck also comprises points focusing on the importance of having top-notch data from Musk's social network X (formerly Twitter), which is essential for training advanced language models. This technology is the foundation of AI chatbots, an area where xAI plans to compete with other well-funded companies like OpenAI.
The timing of this AI venture couldn't be better, as major tech players are increasingly prioritizing AI development in their operations. Clearly, nobody wants to lag behind in the race for advanced AI technologies.