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Elon Musk's xAI seeking to raise $6 billion in Andreessen Horowitz-backed funding: Report

Elon Musk's xAI seeking to raise $6 billion in Andreessen Horowitz-backed funding: Report

The Hindu
Friday, May 24, 2024 2:25 AM GMT

Elon Musk’s xAI is seeking to raise close to $6 billion in a funding round, the Financial Times reported.

Elon Musk's artificial intelligence startup, xAI, is seeking to raise close to $6 billion in a funding round backed by Silicon Valley heavyweights including Andreessen Horowitz, the Financial Times reported on Thursday.

The round also includes commitments from Sequoia Capital and Tribe Capital, the report said, citing people familiar with the negotiations. It would value the startup at $18 billion, according to a source familiar with the matter.

The AI race has been heating up, with several investors signing big checks for start-ups looking to compete with market leaders like OpenAI.

AI startups raised $19.15 billion in venture capital funding in the first quarter, compared with $16.36 billion in the year-ago period, according to data from PitchBook.

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

Representatives for Musk and the investment firms did not immediately respond to Reuters requests for comment.

Musk had denied a report earlier this year that said xAI was seeking funding.

Read full story on The Hindu
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