Street Calls of the Week
Investing.com -- Elon Musk’s artificial intelligence company xAI has secured $10 billion in new funding, pushing its post-money valuation to $200 billion, CNBC reported on Friday, citing sources familiar with the matter.
The AI startup did not immediately respond to a request for comment about the funding round.
This valuation represents more than a twofold increase from the $75 billion valuation the company held in July, according to data from Pitchbook.
The massive funding round positions xAI among the world’s most valuable companies, behind only OpenAI, China’s Bytedance, and Musk’s space exploration company SpaceX.
Investor interest in AI startups has remained robust despite growing concerns about technology industry spending levels.
According to CNBC, the newly raised capital could be allocated toward building data centers equipped with graphics processing units from Nvidia and AMD, which are essential for developing next-generation artificial intelligence systems. The funds might also be used to recruit high-cost talent in the competitive AI field.
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