Elon Musk’s artificial intelligence startup, xAI, is on the lookout to raise nearly $6 billion in a funding round supported by major Silicon Valley investors, including Andreessen Horowitz, according to a report by the Financial Times on Thursday.
The funding round also involves commitments from Sequoia Capital and Tribe Capital, as per sources familiar with the negotiations. This influx of capital would value xAI at an impressive $18 billion.
The AI sector is witnessing intense competition, with investors eager to back startups challenging established giants like OpenAI. In the first quarter alone, AI startups garnered $19.15 billion in venture capital funding, up from $16.36 billion during the same period last year, according to PitchBook data.
Representatives for Elon Musk and the involved investment firms have not yet responded to Reuters’ requests for comment.
Earlier this year, Musk had refuted a report suggesting that xAI was seeking funding.
