Elon Musk's xAI in Early Talks to Raise Funding at $40 Billion Valuation

Oct 29, 2024, 06:53 PM

Elon Musk's artificial intelligence startup, xAI, is in discussions with investors to raise new funding that would value the company at approximately $40 billion, according to reports from the Wall Street Journal. This valuation represents a significant increase from its previous valuation of $24 billion following a $6 billion funding round in May earlier this year. The new funds are expected to be used to expand xAI's AI infrastructure, including plans to double the size of its Memphis-based supercomputer, Colossus. The talks are reportedly in the early stages, and the funding would support xAI's goal to compete with other leading AI companies, with significant investments expected to go towards Nvidia GPUs.