During a recent investor call, Elon Musk hinted at a significant valuation adjustment for his artificial intelligence startup, xAI. The Tesla and SpaceX CEO mentioned that he was looking to establish a “proper value” for xAI, sparking speculation among investors and industry watchers.
The news was first reported by CNBC’s David Faber during a segment on the Faber Report. According to sources familiar with the call, Musk’s comments about a “proper valuation” for xAI were seen as a potential indication of an upcoming capital raise for the company. While Musk did not explicitly mention a new funding round, his remarks suggested that xAI could be gearing up for a significant influx of capital in the near future.
On the call, Musk discussed the recent merger between xAI and X, which valued X at $33 billion. xAI, on the other hand, was previously valued at up to $80 billion. The combination of the two companies has led to the integration of data, models, compute, distribution, and talent, strengthening xAI’s position in the AI market.
Launched in July 2023, xAI introduced its Grok chatbot to compete with other AI platforms like Anthropic’s Claude and OpenAI’s ChatGPT. The merger with X has allowed xAI to leverage X’s data to train Grok, giving the company a competitive edge in the industry. Additionally, xAI has made significant advancements in the artificial intelligence space, including the rapid setup of Colossus, a supercomputer cluster with 100,000 GPUs, in just 122 days. The supercomputer has since been expanded to 200,000 GPUs, with plans for further expansion in the works.
Overall, Musk’s comments during the investor call have sparked excitement and speculation about xAI’s future growth and ambitions. As the company continues to innovate and expand its capabilities, it will be interesting to see how its valuation evolves and how it positions itself in the competitive AI landscape.