Musk’s xAI In Talks To Raise $6B.

Musk is targeting wealthy investors from the Middle East and East Asia to raise $6B in funding for xAI, valuing the company at $20B, and rivaling competitors Anthropic and OpenAI. 

Key Points:

• Last week, Musk denied reports that his AI company xAI (makers of the chatbot, Grok, which is trained on Tweets) had raised $500M, taking it halfway towards its goal of $1B.

• Document filings show that Musk is in talks with global investors from the Middle East, Hong Kong, Japan, and Korea to raise $6B in investment. 

• If successful, this funding will value xAI at $20B, behind OpenAI’s $100B valuation, but ahead of OpenAI competitor, Anthropic, which is valued at $18.4B.

Musk recently angered current investors, after threatening to remove all Tesla AI projects, unless he got 25% control over the company, which could affect discussions with his new global investors.