xAI is about to raise $6 billion in funding


xAI is about to raise $6 billion in funding

Bloomberg reports that billionaire Elon Musk's artificial intelligence venture xAI is nearing an agreement to raise $6 billion in a fundraising round that would value the business at $18 billion.

Unless the terms of the sale, which provides investors a quarter of the 10-month-old company, change, the deal is anticipated to conclude in the coming weeks.

The well-known Silicon Valley venture capital firm Sequoia Capital has pledged to invest in the artificial intelligence startup xAI, supporting the Tesla CEO's attempts to raise billions of dollars and take on competitors like OpenAI, Meta, and Google.

Musk created xAI in 2023 with the goal of discovering the true nature of the cosmos, and he has spent months seeking to fund up to $6 billion from investors worldwide for the project.

In a fundraising round that might value the firm at $18 billion or more, the billionaire extended an invitation to investors who helped fund his acquisition of the social media platform Twitter in 2022 to participate in xAI before others.

After investing $800 million in Twitter, Sequoia Capital is now making an investment in xAI, however it is unknown how much it will invest in the nascent artificial intelligence startup.

Enormous language models are costly to build and operate, and their training and operation need expensive hardware and a lot of processing power.

Microsoft has committed $13 billion to OpenAI, and Google and Amazon have pledged $6 billion to Anthropic.

Musk hired engineers and researchers to support advanced artificial intelligence, and he was striving to put together the processors required to train models of artificial intelligence.

The funding expedites this effort and raises the Grok chatbot's performance to par with that of its rivals.

Musk co-founded OpenAI with the company's CEO, Sam Altman, and others in 2015, but he quit the company's board of directors in 2018 due to disagreements with Altman about the company's direction, which began as a non-profit corporation and later became a for-profit entity.

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