Elon Musk has offered a 25% stake in xAI to investors who backed his $44 billion acquisition of Twitter (now called X). xAI was founded last year to compete with companies like OpenAI and Anthropic. People familiar with the matter said xAI will complete a new round of $5 billion in financing as early as Wednesday, doubling its valuation to $50 billion in just six months. When the financing ends this week, xAI will raise a total of about $11 billion to cover the huge expenses required to build AI models and one of the world's largest supercomputer clusters. This means that some of Musk's supporters, who lost billions of dollars when he acquired Twitter, can make a lot of money from xAI shares due to the sharp increase in the value of the startup. The beneficiaries of investors in Musk's two companies include Fidelity, Oracle co-founder Larry Ellison, Saudi Prince Alwaleed bin Talal, Twitter founder Jack Dorsey, and Silicon Valley venture capital firms Sequoia Capital and Andreessen Horowitz (a16z). (FT)