Elon Musk's xAI Targets $40 Billion Valuation

Elon Musk's AI company, xAI, is reportedly in discussions with investors to raise several billion dollars, aiming for a valuation of approximately $40 billion. This prospective valuation nearly doubles xAI's current post-money valuation of $24 billion achieved after a $6 billion funding round in May 2023. The funding talks are in preliminary stages, and terms could potentially change, or the negotiations could collapse. xAI, which Musk founded as a competitor to OpenAI, intends to leverage its enterprise API and the Grok AI model, which is trained on 100,000 Nvidia GPUs. Notably, xAI distinguishes itself by allowing Grok to be open-sourced, aligning with the open-source strategies of companies like Meta. The efforts to raise substantial funds underscore xAI's ambition to compete with major players such as OpenAI, which recently reached a valuation of $157 billion.