- An artificial intelligence (AI) startup named xAI is in negotiation over a valuation ranging from $15 billion to $20 billion, as reported by Bloomberg.
- Notably, xAI could not be reached for immediate comments.
- Last December, Elon Musk, the founder of xAI, claimed that his AI company didn’t need fundraising despite confirming plans of raising up to $1 billion in equity.
- The establishment of xAI by Musk was mainly a countermeasure to Big Tech’s AI strategies which he faulted for excessive censorship and insufficient safety precautions.
xAI Valuation Discussions
“That’s simply not correct,” he commented in response to a user’s post about the Bloomberg report on social media network X. The AI startup xAI is in talks over a valuation of between $15 billion and $20 billion, but the terms may shift in the upcoming weeks, according to Bloomberg who quoted people knowledgeable about the issue.
Reaching Out To xAI
An attempt to get a response from xAI was not successful immediately.
Investors’ Expectations and Conditions
Musk is anticipated to conclude the terms with investors within the next few weeks, and a few entities are assessing their options on whether they could get more computational power in Addition to—or in some instances, instead of—xecuring xAI’s equity shares, Bloomberg stated.
Musk’s Comments on Fundraising
In December of the previous year, Musk declared that his AI company was not on a fundraising drive. This came just a day after the startup registered an application to the U.S. securities regulator to solicit up to $1 billion via an equity offer.
Background of xAI Launch
In July the previous year, Musk unveiled xAI as a countermeasure to the overbearing AI strategies of Big Tech companies, which he criticized for overly censoring content and not implementing sufficient safety policies.
These developments could create sizable impacts in the trading or forex environment by fostering a shift in asset investments as negotiation of the startup’s valuation progresses.