According to ChainCatcher, Elon Musk has offered a 25% stake in xAI to investors who supported his $44 billion acquisition of Twitter (now called X). xAI was founded last year to compete with companies such as OpenAI and Anthropic.
xAI is expected to close a new $5 billion round of funding as early as Wednesday, doubling its valuation to $50 billion in just six months, according to people familiar with the matter. When the funding closes this week, xAI will have raised a total of about $11 billion to fund the massive spending needed to build AI models and one of the world’s largest supercomputer clusters.
This means that, as the value of this startup has soared, some of Musk's supporters can profit significantly from their shares in xAI, while these supporters had incurred billions of dollars in paper losses during his acquisition of Twitter. Beneficiaries as 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).