Insiders reveal Sequoia Capital is a potential investor.
Elon Musk’s artificial intelligence startup, X.AI Corp., is expected to finalize a funding round at a valuation of around $18 billion “as soon as this week,” Bloomberg reported earlier this week, citing sources familiar with the matter.
While the final amount of the round remains undecided, expectations are set for a $6 billion raise. Sequoia Capital is among the notable participants in this round, as reported by Bloomberg.
The specifics of the deal, including valuation and timing, are still subject to change, according to sources who requested anonymity due to the private nature of the information.
The investment pitch for xAI, which competes with OpenAI, emphasizes Musk’s successful ventures with Tesla Inc. and SpaceX. The company reportedly plans to leverage data from Elon Musk’s social network, X (formerly Twitter), to train its AI models.
Founded in March 2023, xAI aims to create an AI capable of advanced mathematical reasoning, a capability not yet found in current models. xAI has developed a chatbot called Grok, which is integrated with the X platform and is accessible to Premium+ subscribers once it leaves beta.