New York: Elon Musk’s xAI is preparing to raise more money from investors in a deal that could value the artificial-intelligence (AI) company between US$170bil and US$200bil, the Financial Times (FT) reports, citing people close to the discussions.
Saudi Arabia’s PIF sovereign wealth fund is expected to play a large role in the deal, according to the FT report last Friday. PIF holds an indirect interest in xAI through its stake in Kingdom Holdings Co, which has an US$800mil investment in the firm.
The talks were preliminary and the details could change, the report said.
“xAI is not seeking funding right now. We have plenty of capital,” Musk posted on X after the report.
PIF did not immediately respond to a Reuters request for comment.
Morgan Stanley said in late June xAI had completed a US$5bil debt raise alongside a separate US$5bil equity investment, as the startup looks to expand its AI infrastructure. — Reuters
