Last Updated: January 27, 2024, 17:00 IST
Musk is trying to compete with OpenAI and for that he wants large funds
Elon Musk’s synthetic intelligence startup xAI is in talks to elevate up to $6 billion at a proposed valuation of $20 billion.
(Reuters) -Elon Musk’s synthetic intelligence begin-up xAI is in talks to elevate up to $6 billion at a proposed valuation of $20 billion, the Financial Times reported on Friday, because the billionaire entrepreneur appears to mount a problem to OpenAI.
The begin-up has been in talks with household workplaces in Hong Kong and is concentrating on sovereign wealth funds within the Middle East for the funding, in accordance to the report, which cited a number of folks conversant in the matter.
The AI race has been heating up with a number of traders signing large checks for begin-ups trying to capitalize on what has captured Silicon Valley’s consideration over the previous yr.
A $6-billion fundraise could be a lot larger than the $1 billion aim xAI had set final month in a submitting with the U.S. Securities and Exchange Commission.
At $20 billion, xAI’s valuation could be a fraction of OpenAI’s, however consistent with another friends reminiscent of Google-backed Anthropic.
Musk has approached traders in Japan and South Korea for the newest fundraise, the Financial Times reported. His workplace didn’t instantly reply to a Reuters request for remark.
Morgan Stanley is coordinating the fundraise, in accordance to the report. The financial institution was one among a number of that helped finance Musk’s takeover of social media platform X, previously often known as Twitter.
Last week, Musk denied a report that xAI had secured $500 million in commitments from traders towards a $1 billion funding aim.
The CEO of Tesla has been vocal about his plans to construct safer AI. Musk co-based OpenAI in 2015, however stepped down from its board in 2018.
Last yr, xAI launched “Grok”, a chatbot rivaling OpenAI’s ChatGPT.
Musk additionally warned about growing AI and robotics exterior Tesla, earlier this month, except he will get extra voting management on the electrical-automobile maker. He mentioned he could be uncomfortable constructing Tesla into an AI chief except he had 25% voting management.
Thanks to the recognition of ChatGPT, the AI trade has been a uncommon brilliant spot in a subdued begin-up funding setting.
Anthropic and Microsoft-backed Inflection AI have additionally raised funds in current months.
(This story has not been edited by News18 workers and is printed from a syndicated information company feed – Reuters)
