Elon Musk’s xAI could be valued at more than $20B after heavy demand in first funding round: sources

Elon Musk’s new AI startup could be valued at a higher-than-expected $20 billion in its first funding round, with investor demand surging as the process nears a close, The Post has learned.

Musk’s xAI — which powers the snarky Grok chatbot — could raise between $7 billion and $8 billion at that lofty valuation as it competes with Google’s Gemini AI platform and OpenAI’s ChatGPT, a source with knowledge told The Post.

That would exceed the $6 billion getting raised at an $18 billion valuation reported by Bloomberg earlier this week.

Musk — who launched Tesla, SpaceX, Neuralink and Boring — has asked xAI investors to wire in money by the end of Friday before he closes the window on the first funding round, another source who is investing in xAI said.

“People are asking for a second close so they can put more money in,” the source told The Post on Friday.

Part of the reason for the overwhelming demand has been Musk making a convincing case that he can leverage Tesla’s computing power to help xAI, a second source investing in the round said. The electric vehicles use only 10% of their computing power,