Close this search box.
Blog » News » xAI owned by Elon Musk close to raising $6 billion

xAI owned by Elon Musk close to raising $6 billion

xAI owned by Elon Musk

Artificial intelligence (AI) startup xAI, owned by billionaire Elon Musk, is close to reaching $6 billion in investor support.

Musk has been outspoken about his aims to win the war to be crowned the American leader in the AI industry. With this investment in xAI from the same faces that funded his takeover of Twitter, he looks like he might be catching the other significant players in the battle for that throne.

Musk’s xAI boosted by billions

Despite his controversial reputation, Musk’s business ideas have always garnered support from venture capitalists. The Financial Times reports that Sequoia Capital, a prominent investor, is leading the charge in backing Musk’s bid for AI dominance.

According to reports coinciding with the FT, from Bloomberg, this most recent round of funding values xAI at $18 billion.

The billionaire businessman in the Forbes Rich List’s top 10 has his heart set on rivaling ChatGPT in both reach and research. To make a play for that top spot, xAI launched Grok, an AI chatbot.

Sadly for Grok, its integration with X (Formerly known as Twitter) received worldwide criticism for its utterly made-up news. Most recently, NBA star Klay Thompson was accused of vandalism when “throwing bricks,” but it was a bit of basketball slang for being pretty rubbish and hitting the rim when shooting.

Musk started a recruitment campaign to pilfer Tesla’s top talent to improve Grok. This approach would have a domino effect in the world of highly sought-after AI specialists.

We reported that Tesla lost one of their leading engineers to Musk’s surge for the AI crown. Musk stated that the “talent war for AI is the craziest talent-war I’ve ever seen.”

Musk made the news earlier this month for all the wrong reasons. He cut short a business trip to India after the company slashed the price of its electric vehicles.

Tesla cut prices domestically for its five landmark cars but has also applied the cut rates globally, impacting the international electric vehicle market.

So, eyes will be on Grok and Musk’s march to the top of the AI world. With this investment from principal backers and their trust, Musk will have to hope this is one business venture that makes more money than it loses.

Image: Ideogram.

About Due’s Editorial Process

We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading finance and industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.

Financial News Writer and Editor
Brian-Damien Morgan, an accomplished journalist and features writer, boasts a rich career that has evolved across various media platforms. With extensive experience in the print sector of several UK newspapers, Brian transitioned seamlessly into the realm of digital broadcasting and specialized financial content creation. Brian now focuses on finance, technology, legal matters, and the wide spectrum of money-related topics.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.


Top Trending Posts

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More