Elon Musk's startup xAI is now reportedly worth more than what the billionaire paid for Twitter
Summary
None Elon Musks AI startup, xAI, has been valued at $50 billion, The Wall Street Journal reported. None Investors in xAIs new funding round reportedly include Sequoia Capital and Andreessen Horowitz.Elon Musks AI startup, xAI, has reportedly been valued at $50 billion $6 billion more than what he paid to acquire Twitter, the social-media platform now known as X.The Wall Street Journal reported on Wednesday that the startup told investors it had raised $5 billion in a funding round at a valuation double what it was in the spring.The new valuation means xAI has surpassed the $44 billion Musk paid for Twitter in October 2022. The platforms advertising revenue dropped after some major brands pulled their content, and the company has struggled to win back advertisers.Representatives for xAI did not immediately respond to a request for comment made outside normal working hours.Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, and Qatars sovereign wealth fund, the Qatar Investment Authority, are expected to participate in xAIs fresh funding round, people familiar with the matter told The Journal.This spring from A16z and Sequoia Capital at a $24 billion post-money valuation. The new round means the AI company has raised a total of $11 billion this year.Musk founded xAI in 2023, partly to serve as an alternative to OpenAI, which the billionaire cofounded in 2015 alongside Sam Altman, its CEO. Musk parted ways with the company in 2019 and has been critical of its shift away from its nonprofit origins.He sued the company this year, accusing OpenAI and Microsoft of creating an artificial-intelligence monopoly and engaging in "intensified" anticompetitive practices, citing "lavish compensation" offers as one example.