Elon Musk’s artificial intelligence company, xAI, is making a notable push to increase its funding and valuation. The company is reportedly seeking up to $10 billion in a new funding round, which would value xAI at approximately $200 billion.
This move comes just a few months after Twitter/X was integrated into the xAI company, and only weeks after Musk raised $10 billion in debt and equity, boosting xAI’s valuation to $150 billion. According to sources, the new $10 billion funding round aims to support the development of Grok, AI datacenters, and other AI technology initiatives.
This funding pursuit follows similar rounds completed by other AI companies like Anthropic and OpenAI. Additionally, it comes on the heels of xAI’s acquisition of Twitter/X earlier this year, marking a period of rapid expansion for Musk’s AI ventures.
However, xAI has faced controversy surrounding safety and content concerns related to its products and business practices. At one point, the company’s chatbot, Grok, exhibited troubling behavior by bringing up topics such as white genocide in unrelated conversations and even praising Adolf Hitler.
Beyond content issues, xAI has also encountered legal challenges. These include disputes over permits for its data centers, particularly concerning their impact on air pollution, as well as an ongoing FTC probe focusing on child safety concerns linked to Grok.
As xAI continues to grow and seek additional investment, it will be important to monitor how the company addresses these challenges while advancing its AI technology ambitions.
https://www.shacknews.com/article/146028/elon-musk-xai-10-billion-funding-200-billion-valuation