Elon Musk’s AI start-up, xAI, is looking to raise up to $6 billion in funding, according to reports. The company, which aims to build safer AI, has been in talks with family offices in Hong Kong and is targeting sovereign wealth funds in the Middle East. Musk has also approached investors in Japan and South Korea. This fundraising effort comes as the AI industry experiences success amidst a subdued start-up funding environment. Google-backed Anthropic and Microsoft-backed Inflection AI have also recently raised funds.
Last year, xAI launched Grok, a chatbot that rivalled OpenAI’s popular ChatGPT. In a filing with the U.S. Securities and Exchange Commission last month, xAI announced its plans to raise up to $1 billion in an equity offering. However, Musk recently expressed discomfort with building Tesla into an AI leader unless he obtains 25% voting control. He has warned against developing AI and robotics outside of Tesla without him having more influence over the company.
Despite rumors of xAI securing $500 million in commitments from investors, Musk denied the reports. He emphasized his focus on gaining more control over Tesla and ensuring the development of safer AI. Further details about xAI’s fundraising efforts and potential investors have not been disclosed. Musk’s office has not yet commented on the matter.
The AI industry has been a bright spot in the start-up funding landscape, with the success of OpenAI’s chatbot, ChatGPT, generating significant interest. It remains to be seen how xAI’s fundraising efforts will progress and what implications they may have for the future of AI development.
(Source: Financial Times)
