Elon Musk’s 10-month-old AI business, xAI, is seeking $6 billion at a pre-money valuation of $18 billion, according to TechCrunch and The Information.
According to reports, Musk, who co-founded Sam Altman’s OpenAI in 2015, recently launched his AI company’s ChatGPT-like chatbot, “Grok,” and is anticipated to close the acquisition in the coming weeks.
“Sequoia Capital and Future Ventures, the venture fund co-founded by Musk’s long-time friend Steve Jurvetson, are participating in the round,” the report mentioned.
Valour Equity Partners and Gigafund VC firms are also expected to participate. Musk, 52, has attacked OpenAI’s shift in mindset since leaving the company in 2018.
He unveiled Grok last year, coinciding with the growing popularity of AI in technology organisations. His AI business now aims to compete with OpenAI.
According to Mashable, xAI is positioned as an AI brand that will work with Musk’s other firms, such as Tesla, SpaceX, The Boring Company, and Neuralink.
The company intends to “master the physical world” by training on data from all of Musk’s businesses and assisting Tesla in developing self-driving cars and its robot Optimus.
At the moment, xAI’s only genuine product is Grok, an AI chatbot incorporated into Musk’s own social media firm X, formerly Twitter, which also owns a stake in the AI company.
Mashable analysts believe the chatbot has underperformed.
According to the sources, xAI is presently seeking engineers and designers, as well as employees for the product, data, and infrastructure verticals.
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