xAI, the artificial intelligence startup, recently completed a substantial $10 billion capital raise. This significant funding round included equal parts equity and debt, positioning the company with a $75 billion valuation. SpaceX, another venture associated with Elon Musk, contributed $2 billion to the equity portion of this raise. Morgan Stanley advised on the debt financing component.
xAI's Strategic Growth in AI Development
This capital infusion supports xAI's ambitious efforts to advance artificial general intelligence. The company aims to challenge established players like OpenAI and Anthropic in the rapidly evolving AI landscape. xAI's Grok chatbot is already integrating into Tesla vehicles, demonstrating practical applications.
Elon Musk has expressed a desire for Tesla shareholders to consider an investment in xAI. A shareholder vote on this matter is anticipated in November. Such a move would further consolidate Musk's various business interests.
The funding arrives as DeepTech funding continues to attract considerable investment. xAI's focus on developing advanced AI models reflects a broader trend in the technology sector. The company is actively working to enhance its Grok chatbot, which directly competes with products such as Google Gemini.
