Musk’s xAI in funding talks to value the company at $40 billion

Elon Musk’s artificial intelligence startup xAI is reportedly engaged in funding talks that could see the company secure a $40 billion valuation.

According to a Tuesday report from The Wall Street Journal, xAI is trying to raise several billion dollars. The talks are in the early stages and could disintegrate.

After the funding round, xAI could reach a valuation of $40 billion, nearly doubling what it secured after its most recent funding round this year. In May, xAI received just over $6 billion in venture capital funding, valuing the company at about $24 billion.

If xAI lands the funding, it would exponentially expand the company that Mr. Musk started in 2023. He initially launched xAI to compete with Sam Altman’s OpenAI, of which Mr. Musk was originally a part.

While xAI has grown significantly since its launch, OpenAI is still the clear leader in generative AI. This year, after transitioning to a for-profit model, OpenAI secured $6.6 billion in its first funding round, which could value the company at $157 billion.