Billionaire Elon Musk’s artificial intelligence (AI) start-up is in discussions for investments worth $6 billion, the equivalent of around €5.5 billion. The company called xAI should therefore be able to compete with OpenAI, the company behind the well-known chatbot ChatGPT. Insiders report this to the British business newspaper Financial Times.
The start-up xAI has a chatbot called Grok. That chatbot uses data provided by the social media platform X, which is owned by Musk. Users of X with a subscription to the platform can use Grok.
According to the newspaper, wealthy individuals and investors have been approached by xAI in recent weeks. Contact has also been made with sovereign wealth funds in the Middle East. FT further states that Morgan Stanley is coordinating the fundraising, but the investment bank declined to comment to the newspaper, nor did Musk himself.
The total amount is higher than the target of $ 1 billion, which emerged from data from the American financial regulator SEC. Sources previously reported to the Bloomberg news agency that around $500 million of this has already been pledged by investors.
Bloomberg then further reported that xAI was targeting a total valuation of between $15 billion and $20 billion. By comparison, OpenAI would aim for a valuation of $100 billion in a new investment round, according to the news agency. This would make OpenAI one of the most valuable start-ups in the world.
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Also read:
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2024-01-26 11:17:19
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