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Investing.com -- Elon Musk’s artificial intelligence venture xAI is preparing to raise new capital in a deal that could value the company as high as $200 billion, the Financial Times reported, citing people close to the talks. The potential transaction, which may launch formally as soon as next month, would mark xAI’s third major share sale in less than two months.
The proposed fundraising comes after a rapid ascent in xAI’s valuation, which stood at $18 billion during its Series B round as recently as May 2024. A deal at the top end of the targeted range would place the company among the world’s most valuable privately held technology firms.
xAI raised $10 billion in July through a combination of debt and equity, and secured $300 million more via a secondary share sale in June. The pace of capital inflows signals investor confidence in the company’s technology pipeline and its founder’s strategic aims.
This week, xAI released the fourth-generation version of its Grok chatbot, which it says has achieved state-of-the-art performance across nearly all benchmarks. The product milestone has added momentum to what has already been a meteoric year for the AI firm.
The Financial Times reported that three people familiar with the due diligence process said xAI is targeting a valuation between $170 billion and $200 billion, though the terms of the deal remain fluid. A significant backing is expected from Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), which has sought to deepen its presence in global technology.
If the deal proceeds as envisioned, it would underscore xAI’s emergence as a top-tier AI contender, and mark another high-profile chapter in Musk’s expansive tech portfolio.