Elon Musk-founded artificial intelligence company xAI aims to close a major funding round within the next month. The company plans to close a $15 billion round in December with a preliminary valuation of $230 billion. According to sources familiar with the matter, the deadline for the investment allocation has been set for December 19th.
xAI Increases Target
This development confirms xAI’s previously reported plans to raise a large amount of funding. However, following this news, Elon Musk posted on social media platform X, calling the new reports “false.” Sources indicate that xAI will allocate a large portion of this massive fundraising to financing graphics processing units (GPUs) that will run large language models (LLMs).
xAI’s investment pursuits are a further indicator of the high valuations and growing demand in the AI sector. Previously, in September, it was suggested that xAI was targeting a $10 billion round at a $200 billion valuation.
Other players in the industry are making similar strides. For example, OpenAI closed a $6.6 billion stock sale last month at a $500 billion valuation. Reuters also reported that the company is planning a $1 trillion IPO. Similarly, Anthropic closed a $13 billion funding round in September, nearly tripling its valuation from March.
xAI is particularly known for its Grok chatbot. The company also recently launched Grokipedia, an AI-powered platform designed to rival Wikipedia. Musk announced in March that xAI would merge with social media platform X, a deal that gave the platform a $33 billion valuation.
