Elon Musk's artificial intelligence (xAI) initiative is reportedly in talks to secure up to $6 billion in funding from investors, aiming to compete with OpenAI, according to sources familiar with the matter.
The fundraising efforts have approached wealthy individuals and investors, with a focus on family offices in Hong Kong.
Moreover, sovereign wealth funds in the Middle East, along with investors in Japan and South Korea, are being targeted.
The substantial funding aims to support Musk's ambitions in the artificial intelligence space. Morgan Stanley is said to be coordinating the fundraising activities.
In a recent post on X, Tesla (NASDAQ:TSLA) CEO Elon Musk restated his call for increased control over Tesla’s voting rights. Musk emphasized the importance of such control for Tesla to advance its capabilities in AI and robotics technology.
This statement followed the company's fourth-quarter earnings report, which fell short of analyst estimates and resulted in a sharp decline in Tesla's shares during after-hours trading.
“I’m not looking for additional economics. I just want to be an effective steward of very powerful technology,” Musk said in the call.