Elon Musk wants to go ahead with his artificial intelligence company xAI with more capital. The new round would have the objective of reaching a valuation of 45,000 million dollars, becoming the second most valuable company in the sector. OpenAI’s latest fundraising raised its valuation to 150 billion.
If Musk’s goal is realized, xAI would exceed 40,000 million Antrophic. The most striking part is where he is trying to raise millions. According to the Financial Times, the founder of Tesla has made contacts in Saudi Arabia and Qatar. The most fascinating thing is that Musk ended up with Riyadh financially.
When it took Tesla public in 2018, PIF, the Saudi sovereign wealth fund, was going to be one of the key investors. But The investment vehicle never disbursed a dollar and Musk accused the governor of the fundYasir Othman Al-Rumayyan, of “leaving him stranded.”
Now that the Australian tycoon is a Trump ally Nobody knows how the play can end. Musk spoke this week at the Saudi forum Saudi Arabia’s Future Investment Initiative. And his old enemy Rumayyan too. In fact, he noted that the country is reducing the sovereign wealth fund’s specific allocation of $930 billion for international investments, although AI remained a priority for the kingdom.
It seems easier to ask for money in Qatar. Qatar Investment Authority, the sovereign wealth fund, financed part of Musk’s conquest of Twitter. Oil-rich Gulf countries such as Qatar, Saudi Arabia and the United Arab Emirates have expressed ambitions to be leading players in AI, as they possess significant financial power and abundant energy resources.
Last month, Groqthe American artificial intelligence company, said it planned to establish the world’s largest inference data center in Saudi Arabia after signing a deal with Aramco Digital.
Funding for AI startups has skyrocketed since OpenAI launched its popular ChatGPT chatbot in late 2022. In the first half of this year, AI startups attracted more than 40% percent of all venture capital funding. from the US, according to PitchBook. Musk is proposing to reach the valuation of $45 billion. To this end, its current partners Sequoia Capital and Valor Equity Partners would enter the round.
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