Elon Musk’s AI startup, xAI, has reportedly raised $500 million and is aiming for $1 billion

Elon Musk’s AI startup xAI has secured $500 million in investor commitments toward its $1 billion funding goal, with a valuation between $15 billion and $20 billion being discussed, Bloomberg reports. Investors in X, including Larry Ellison, Sequoia Capital, Andreessen Horowitz, Fidelity Management & Research Co. and Saudi Prince Alwaleed bin Talal, are expected to own 25% of xAI. According to Bloomberg’s sources, this means that xAI will offer its equity investors in X the opportunity to invest in xAI at least 25% of the amount they invested in X. Some parties are considering acquiring computing power in addition to, or instead of, xAI shares. Final terms are expected to be worked out in the coming weeks. Musk says on X: “This is fake news from Bloomberg,” without specifying what’s fake.

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