Elon Musk’s xAI on track for $18b valuation with upcoming fundraise: report

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Elon Musk’s xAI is set to raise new capital as soon as this week in a round that would push its valuation to around US$18 billion, Bloomberg reported, citing sources.

In April, it was reported that Musk’s AI venture was looking to raise up to US$6 billion in the round, with Sequoia Capital among the investors.

Talks are still ongoing and details such as the timing and the company’s valuation are still up in the air, the people said.

With its chatbot named Grok, xAI is seeking its place against rivals like OpenAI in the competitive AI chatbot market.

Recently, Musk changed Grok to an open-source model. The move came as he accused OpenAI of not being open despite the company’s name as well as its initial promise to make its tech publicly accessible.

Musk has highlighted that the news summaries would rely on posts from X users, with the feature being accessible only to paid X Premium subscribers.

Notably, X has used Grok to give users a summary of news events. Musk mentioned that these summaries will be updated with new information as it becomes available. However, recent reports have surfaced regarding Grok spreading fake news on X.

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