Musk’s XAI Has Discussed Raising $5 Billion at $45 Billion Valuation

Elon Musk’s artificial intelligence startup xAI has discussed raising $5 billion from investors at a valuation of about $45 billion, according to a person familiar with the discussions. Investors could include a mix of returning backers, including Valor Equity Partners.

Existing investors Sequoia Capital, Andreessen Horowitz and Vy Capital have also been in talks to invest, according to a second person, who has invested in xAI. Another investor that could participate is Qatar Investment Authority, a major investor in Musk’s 2022 buyout of Twitter, now called X, the person said.

XAI has also been in talks with strategic investors, which could limit venture investors from participating, according to two people told about the deal from xAI leadership. The identity of those investors couldn’t be learned.