Musk offers 25% stake in xAI to investors supporting his acquisition of Twitter

2024-11-27 13:11:39

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ChainCatcher news, Elon Musk has offered investors who supported his $44 billion acquisition of Twitter (now named X) a 25% stake in xAI. xAI was founded last year with the aim of competing with companies like OpenAI and Anthropic.

Insiders revealed that xAI is set to complete a new round of $5 billion financing as early as Wednesday, with its valuation doubling in just six months to reach $50 billion. By the end of this week's financing, xAI will have raised approximately $11 billion in total to cover the massive expenses required to build AI models and one of the largest supercomputer clusters in the world.

This means that, due to the significant increase in the startup's value, some of Musk's supporters can profit handsomely from their stakes in xAI, while these supporters faced losses of billions of dollars during his acquisition of Twitter. Beneficiaries as investors in Musk's two companies include Fidelity, Oracle co-founder Larry Ellison, Saudi Prince Alwaleed bin Talal, Twitter founder Jack Dorsey, and Silicon Valley venture capital firms Sequoia Capital and Andreessen Horowitz (a16z).

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