Elon Musk’s AI Start-up Looking To Raise Up to $6 Billion To Rival OpenAI – News18

(Reuters) -Elon Musk’s synthetic intelligence start-up xAI is in talks to boost as much as $6 billion at a proposed valuation of $20 billion, the Financial Times reported on Friday, because the billionaire entrepreneur appears to be like to mount a problem to OpenAI.

The start-up has been in talks with household places of work in Hong Kong and is focusing on sovereign wealth funds within the Middle East for the funding, in accordance with the report, which cited a number of individuals accustomed to the matter.

The AI race has been heating up with a number of traders signing large checks for start-ups seeking to capitalize on what has captured Silicon Valley’s consideration over the previous 12 months.

A $6-billion fundraise could be a lot greater than the $1 billion aim xAI had set final month in a submitting with the U.S. Securities and Exchange Commission.

At $20 billion, xAI’s valuation could be a fraction of OpenAI’s, however in keeping with another friends equivalent to Google-backed Anthropic.

Musk has approached traders in Japan and South Korea for the most recent fundraise, the Financial Times reported. His workplace didn’t instantly reply to a Reuters request for remark.

Morgan Stanley is coordinating the fundraise, in accordance with the report. The financial institution was one in all a number of that helped finance Musk’s takeover of social media platform X, previously often called Twitter.

Last week, Musk denied a report that xAI had secured $500 million in commitments from traders towards a $1 billion funding aim.

The CEO of Tesla has been vocal about his plans to construct safer AI. Musk co-founded OpenAI in 2015, however stepped down from its board in 2018.

Last 12 months, xAI launched “Grok”, a chatbot rivaling OpenAI’s ChatGPT.

Musk additionally warned about growing AI and robotics exterior Tesla, earlier this month, until he will get extra voting management on the electric-vehicle maker. He stated he could be uncomfortable constructing Tesla into an AI chief until he had 25% voting management.

Thanks to the recognition of ChatGPT, the AI trade has been a uncommon shiny spot in a subdued start-up funding atmosphere.

Anthropic and Microsoft-backed Inflection AI have additionally raised funds in current months.

(This story has not been edited by News18 workers and is revealed from a syndicated news company feed – Reuters)