A Bloomberg report published on Friday reveals that Elon Musk’s AI startup, xAI, has now secured $500 million in investment commitments. This is a significant milestone for any company, and the promised money is certainly beneficial to Elon Musk in the long run. Ultimately, the firm will keep on getting funds until it reaches the three billion dollar mark, and this seems soon won’t be much of a dream since many people seem to be about Elon Musk.
The report indicated that it was valued between 15 and 20 billion dollars, which is uncommon for an AI-based company, though it could alter its course within the next few weeks. Though Elon Musk hasn’t said anything himself, people are still waiting for confirmation.
The deal will be wrapped up in the coming weeks, and investor names will be released thereafter. Investors would also audit the business’s valuation, after which other terms and conditions would be agreed upon.
However, investors remain reluctant to invest in companies without securing equity investments, as confirmed by Elon Musk last December when he said that his artificial intelligence company cannot raise cash from the market because of recession fears.
In an attempt to challenge big firms like Open AI, Mask launched his AI venture, xAI, in July of last year. He continues to argue that these large AI companies lack transparency and have the potential to exploit personal data for profit, thus raising privacy concerns.
Although there isn’t an impact on Tesla stock, many were hoping that the good news would lead to some growth in the NASDAQ price of Tesla stock.