PANews reported on November 27 that according to the Financial Times, Musk has offered a 25% stake in xAI to investors who supported his $44 billion acquisition of Twitter (now called X). xAI was founded last year to compete with companies such as OpenAI and Anthropic.
xAI is expected to close a new $5 billion round of funding as early as Wednesday, doubling its valuation to $50 billion in just six months, according to people familiar with the matter. When the funding closes this week, xAI will have raised a total of about $11 billion to fund the massive spending needed to build AI models and one of the world’s largest supercomputer clusters.
That means some of Musk’s backers, who lost billions on Twitter, could profit handsomely from their xAI stake as the startup’s value surges.
