Musk’s xAI is looking for a $200 billion valuation in the upcoming investment round, according to the FT
The Financial Times said Friday that Elon Musk’s xAI is getting ready to seek more money from investors in a deal that could value the artificial intelligence business between $170 billion and $200 billion, according to people familiar with the talks.
The FT story predicts a significant involvement for Saudi Arabia’s PIF sovereign wealth fund in the transaction. PIF has an indirect interest in xAI because it owns a $800 million holding in Kingdom Holdings Company.
The report stated that the discussions were preliminary and that the specifics could alter.
“XAI is not currently looking for funding. Musk opened a new tab on X following the FT news and wrote, “We have plenty of capital.”
When Reuters asked PIF for comment, the organization did not immediately reply.
In the midst of fierce competition, Morgan Stanley announced in late June that xAI had successfully raised $5 billion in debt and another $5 billion in strategic equity investment. The firm plans to use data centers to grow its AI infrastructure.
In March, the AI startup purchased X, Musk’s social media company that was formerly known as Twitter, for $33 billion, while xAI was valued at $80 billion.
In July 2023, Musk introduced xAI as a rival to ChatGPT from OpenAI, which announced in March that it will raise up to $40 billion at a $300 billion value.
Bloomberg News reported in June that XAI’s banker, Morgan Stanley, disclosed that the company aims to make over $13 billion annually by 2029.
By the end of this year, the company anticipates generating $1 billion in gross income, and it intends to invest $18 billion in data centers in the future.
