Amid the connection between the Tesla CEO and the ChatGPT developers, Elon Musk’s xAI has reportedly already surpassed a $50 billion value, leading many to wonder if it could eventually take on OpenAI. Indeed, the firm is cited as the beginning of the generative AI wave that has dominated Wall Street demand.
Reports from Business Insider revealed that xAI’s valuation has more than doubled since its arrival in early March. Moreover, the Elon Musk-led startup is worth more than the billionaire paid to acquire X (formerly Twitter) in the groundbreaking acquisition that took place in April of 2022.
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OpenAI Gets Emerging Challenger in A Familiar Face: Why Musk’s xAI Could be Trouble for ChatGPT Developers
Anyone with remedial insight into OpenAI knows that Elon Musk was once one of its key board members. Indeed, he would eventually leave the company behind in 2018, just three years after he took on the growing financial responsibilities of the AI developer. With the meteoric rise of the firm’s ChatGPT chatbot, Musk turned his attention toward his very own startup.
Now, Elon Musk’s xAI has reportedly surpassed a $50 billion valuation and looks to be coming for OpenAI. Although the Sam Altman-led firm is still far superior, there is no question that the gap is slimming. Earlier this year, it was rumored the Musk-led startup had already raised $5 billion.
Also Read: OpenAI Surpasses Goldman Sachs in Valuation as it Tops $157 Billion
The company had previously been seeking investments at a $40 billion evaluation, but that appears to have changed. Moreover, there is no shortage of heavy hitters looking to get involved. Vvalor Quiry Partners, Sequoia Captial, and Andreessen Horowitz are all expected to participate in this round of funding.
Additionally, Qatar’s sovereign wealth fund is also expected to take up a position in the funding round; xAI has already reportedly raised $6 billion from A16z and $24 billion from Sequoia. Now, it looks as though they will increase funding for the OpenAI alternative. Its potential as a challenger will depend on how development goes from here.
