Investors who supported Elon Musk’s bold move to acquire Twitter are now reaping the benefits as his artificial intelligence startup, xAI, sees a significant increase in valuation. According to a report from the Financial Times, xAI is in the process of closing a $5 billion fundraising round, which would value the AI company at around $50 billion. This represents a doubling of xAI’s valuation in just six months.
The fundraising round reportedly only allowed previous investors in xAI to participate, including prominent names such as Fidelity, Larry Ellison, Prince Alwaleed bin Talal of Saudi Arabia, Jack Dorsey, Sequoia Capital, and Andreessen Horowitz. These investors were given a 25% stake in xAI as part of their support for Musk’s acquisition of Twitter, which totaled $44 billion.
Despite some initial challenges and a decrease in valuation after Musk took over xAI, the startup has quickly risen in the AI industry, thanks in part to its impressive computing capabilities. In a groundbreaking move, xAI and NVIDIA completed the Colossus supercomputer cluster in Memphis, Tennessee, consisting of 100,000 Hopper GPUs, in just 122 days. This rapid deployment of cutting-edge technology is a testament to xAI’s potential in the AI market.
One investor in Musk’s ventures highlighted the wisdom of never betting against the Tesla and SpaceX CEO, noting that Elon Musk has a track record of success in the tech industry. With xAI’s soaring valuation and innovative advancements in AI technology, investors who backed Musk’s vision for Twitter are now positioned to benefit from the success of his AI startup.
As xAI continues to make waves in the AI industry, the future looks bright for both the startup and its investors. The rapid growth and increasing valuation of xAI underscore the potential for significant returns for those who believed in Elon Musk’s vision and supported his ambitious endeavors.