Elon Musk's xAI targets $200 billion valuation
Elon Musk's AI company, xAI, is gearing up for a huge funding round that might push its value close to $200 billion. The Saudi Public Investment Fund is expected to be a major backer.
Still, Musk says xAI isn't desperate for cash right now and feels confident about its current resources.
xAI was valued at $80 billion earlier this year
xAI was valued at $80 billion earlier this year after raising $10 billion in a combination of $5 billion in debt and $5 billion in equity.
The company expects to pull in $1 billion revenue by the end of 2025 and hopes to top $13 billion annually by 2029.
They're also planning to spend $18 billion on data centers to power their tech.
xAI competes with ChatGPT
Launched in July 2023, xAI wants to take on OpenAI's ChatGPT with its own tools.
It recently bought social platform X for $33 billion and has big ideas about blending AI with both Tesla and X.
Expanding its Grok chatbot and building an all-in-one AI ecosystem are high on the agenda.