Final Up to date: January 27, 2024, 17:00 IST
Musk is seeking to compete with OpenAI and for that he wants large funds
Elon Musk’s synthetic intelligence startup xAI is in talks to lift as much as $6 billion at a proposed valuation of $20 billion.
(Reuters) -Elon Musk’s synthetic intelligence start-up xAI is in talks to lift as much as $6 billion at a proposed valuation of $20 billion, the Monetary Instances reported on Friday, because the billionaire entrepreneur seems to mount a problem to OpenAI.
The beginning-up has been in talks with household places of work in Hong Kong and is focusing on sovereign wealth funds within the Center East for the funding, in keeping with the report, which cited a number of folks aware of the matter.
The AI race has been heating up with a number of buyers signing large checks for start-ups seeking to capitalize on what has captured Silicon Valley’s consideration over the previous 12 months.
A $6-billion fundraise could be a lot greater than the $1 billion objective xAI had set final month in a submitting with the U.S. Securities and Trade Fee.
At $20 billion, xAI’s valuation could be a fraction of OpenAI’s, however according to another friends akin to Google-backed Anthropic.
Musk has approached buyers in Japan and South Korea for the most recent fundraise, the Monetary Instances reported. His workplace didn’t instantly reply to a Reuters request for remark.
Morgan Stanley is coordinating the fundraise, in keeping with the report. The financial institution was one in every of a number of that helped finance Musk’s takeover of social media platform X, previously often called Twitter.
Final week, Musk denied a report that xAI had secured $500 million in commitments from buyers towards a $1 billion funding objective.
The CEO of Tesla has been vocal about his plans to construct safer AI. Musk co-founded OpenAI in 2015, however stepped down from its board in 2018.
Final 12 months, xAI launched “Grok”, a chatbot rivaling OpenAI’s ChatGPT.
Musk additionally warned about growing AI and robotics exterior Tesla, earlier this month, except he will get extra voting management on the electric-vehicle maker. He stated he could be uncomfortable constructing Tesla into an AI chief except he had 25% voting management.
Because of the recognition of ChatGPT, the AI trade has been a uncommon shiny spot in a subdued start-up funding setting.
Anthropic and Microsoft-backed Inflection AI have additionally raised funds in latest months.
(This story has not been edited by News18 employees and is printed from a syndicated information company feed – Reuters)
