On May 24th, according to the Financial Times, the artificial intelligence startup xAI, led by Elon Musk, is in the process of raising close to $6 billion in funding. This round of financing has garnered support from Silicon Valley heavyweights, including Andreessen Horowitz.
Sources familiar with the negotiations mentioned that investors committing to this round of funding also include Sequoia Capital and Tribe Capital. An insider revealed that this deal would push xAI's valuation to $18 billion.
Competition in the artificial intelligence industry is intensifying, with many investors pouring substantial funds into startups challenging market leaders like OpenAI.
According to data from research firm PitchBook, AI startups raised a total of $19.15 billion in venture capital in the first quarter of this year, surpassing the $16.36 billion raised in the same period last year.
Elon Musk and representatives from the investment firms did not immediately respond to requests for comments.
Earlier this year, Musk had denied a report about xAI seeking funding.
