According to a report, xAI, founded by Elon Musk, is in the process of raising billions of dollars, and it hopes to have at least $6 billion in the kitty by the time it finalizes the round, with an estimated valuation of about $18 billion.
The firm, founded by the tech tycoon, is about 10 months old company by the tech billionaire, which has unveiled an AI chatbot called ‘Grok’, to the world. According to TechCrunch, citing some insider information, the deal is expected to be sealed in the coming weeks.
The list of investors includes reputed entities such as Sequoia Capital and Future Ventures, the latter founded by Musk's long-time associate Steve Jurvetson. Besides, other notable firms such as Valor Equity Partners and Gigafund VC are also said to be on board.
At the time of reporting, neither Musk nor those representing xAI have issued any statement regarding the developments.
In 2015, Musk co-founded OpenAI with other investors. However, he later parted ways with the board in 2018 as there were disagreements regarding the action plan. Now, xAI company is hiring engineers and designers, apart from people for product, data and infrastructure management.
Benefits for employees at the AI startup include competitive cash and equity-based pay, unlimited paid time off, and health, dental, and vision insurance.
xAI, which was established in 2023, debuted its first AI product in November of last year.
According to Musk, the AI chatbot "Grok 2" would "exceed all expectations" when it is deployed. It is now undergoing training.
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