Elon Musk's artificial intelligence (AI) startup, X.AI Corp., is expected to close its funding round at an estimated $18 billion valuation this week, Bloomberg News reported Thursday.
While the total amount to be raised hasn't been finalized, Bloomberg previously reported the round was targeting $6 billion, with participation from Sequoia Capital. The details, including valuation and timing, remain subject to change.
The funding round for the OpenAI competitor was pitched to investors using a deck highlighting Musk's successes with Tesla (NASDAQ:TSLA) and SpaceX, while emphasizing that xAI will leverage high-quality data from X, formerly Twitter.
This access to data is essential for training large language models (LLMs), which underpin AI chatbots, and could enable xAI to potentially compete with other well-funded rivals like ChatGPT maker OpenAI.