Elon Musk returns to technology: xAI valued at $113 billion
3 June 11:46
Elon Musk‘s artificial intelligence company xAI launches a $300 million share sale. The deal values the entire group of companies at $113 billion, which confirms the ambitions of the world’s richest man in the field of AI technologies, "Komersant Ukrainian" reports citing the Financial Times.
The new round of funding comes after Musk resigned from the Trump administration last week. The billionaire was leading an initiative to cut government spending called the Office of Government Efficiency, but faced resistance in the Cabinet.
After the political setbacks, Musk announced his return to working around the clock on his companies.
“Back to working 24/7 and sleeping in conference rooms and factories,”
– he wrote on social media, emphasizing the need to focus on critical technologies.
Strategic merger of X and xAI creates a tech empire
In March, xAI took over social network X (formerly Twitter) in a deal that valued xAI at $80 billion and X at $33 billion. Musk acquired Twitter for $44 billion in October 2022, and now the platform is part of a larger AI ecosystem.
The merger allows xAI to use X’s vast amounts of data to train AI models, as well as access to the platform’s multi-million audience. Musk said the companies will be able to share computing power, talent, and technology.
The merger also helped X, which has lost some advertisers due to changes in content moderation, to capitalize on the growing value of xAI. The deal was discussed only with Musk’s closest confidants, which emphasizes its strategic importance.
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Competing with OpenAI and expanding partnerships
Musk founded xAI in 2023 as a direct competitor to Sam Altman ‘s OpenAI and other tech giants. The company quickly introduced the Grok chatbot and built the Colossus supercomputer cluster, one of the largest AI centers in the United States.
Last month, Microsoft announced the provision of xAI models to its cloud clients, which was an important step in expanding its market reach. Telegram also agreed to distribute Grok to its billion users worldwide.
Along with the share sale, xAI is seeking an additional $5 billion through a package of loans and high-yield bonds. The deal is led by investment bank Morgan Stanley, which demonstrates the seriousness of the company’s intentions to scale the business.
The growth of Musk’s entire business empire
Investors who supported the acquisition of Twitter, including venture capital funds Sequoia Capital and Andreessen Horowitz, received 25% of xAI shares under preliminary agreements. The company is currently in the process of selling shares to employees, after which a larger round of external investment is planned.
The success of xAI has a positive impact on Musk’s entire business empire. Another of his companies, Neuralink, which develops brain implants, has also attracted $600 million in investment, increasing its valuation from $3.5 billion in 2023 to $9 billion.
This demonstrates that despite political setbacks, Musk’s business assets continue to grow in value, especially in the areas of artificial intelligence and biotechnology, which he considers key to the future of humanity.
Elon Musk is a visionary entrepreneur and a fan of Russia
Elon Musk is one of the most influential entrepreneurs of our time, the founder and CEO of many innovative companies such as Tesla, SpaceX, Neuralink, and Boring Company. He was born on June 28, 1971 in Pretoria, South Africa. After moving to the United States, he became a pioneer in the field of electric vehicles, space technology, and artificial intelligence. Musk is often in the spotlight for his ambitious goals, including the colonization of Mars, the development of renewable energy, and the creation of neurocomputer interfaces.
Musk is also known for his active stance on social media, where he often posts controversial statements. In 2022, he acquired the Twitter platform, which he later renamed X. Musk takes a libertarian stance on Internet regulation and freedom of speech, opposing government interference in the activities of tech giants.
Musk plays a prominent role in the context of the Russian-Ukrainian war. His company SpaceX provides the Ukrainian Armed Forces with access to the Starlink satellite Internet, which has provided critical communications at the front. However, some of his public statements have caused outrage among Ukrainians and the international community. For example, Musk has proposed “peace initiatives” that included territorial concessions to Ukraine, which was perceived as support for the Kremlin’s narrative. Recently, Elon Musk was accused of secret contacts with Putin, and he ridiculed Zelenskyy’s statement about Ukraine’s independence.
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