Elon Musk’s AI Startup xAI Valued at $50 Billion, Surpassing Twitter Acquisition

Elon Musk's startup xAI is now reportedly worth more than what the billionaire paid for Twitter. xAI's valuation has doubled since the spring, as per The Wall Street Journal.

Valuation Surpasses Twitter Acquisition

Elon Musk's AI startup, xAI, has been valued at $50 billion, exceeding the $44 billion he paid for Twitter. The recent funding round saw xAI's valuation double from the spring, according to The Wall Street Journal.

Investors in xAI

The new funding round for xAI reportedly includes investors like Sequoia Capital and Andreessen Horowitz.

Financial Challenges and Investor Participation

xAI has faced financial difficulties since Musk's acquisition in 2022, experiencing a decline in advertising revenue. Notable investors expected to participate in the fresh funding round are Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, Qatar's sovereign wealth fund, and Qatar Investment Authority.

Previous Funding Rounds and Company Background

Prior to this, xAI raised a $6 billion Series B at a $24 billion post-money valuation from A16z and Sequoia Capital. In total, xAI has raised $11 billion this year. Elon Musk established xAI in 2023 as an alternative to OpenAI, a company he co-founded in 2015. Musk's departure from OpenAI in 2019 was due to disagreements over its nonprofit direction.

This year, Musk filed a lawsuit against OpenAI and Microsoft, alleging anti-competitive behavior and the creation of an AI monopoly. The lawsuit highlighted extravagant compensation offers as evidence of unfair practices.

Source: Business Insider

—————————————————————————————————————————————
By: bnolan@insider.com (Beatrice Nolan)
Title: Elon Musk’s AI Startup xAI Valued at $50 Billion, Surpassing Twitter Acquisition
Sourced From: www.businessinsider.com/xai-value-twitter-funding-elon-musk-x-2024-11
Published Date: Thu, 21 Nov 2024 12:01:18 +0000