Write an article about
[WASHINGTON] Elon Musk’s artificial intelligence startup xAI is in talks to raise US$4.3 billion through an equity investment on top of the US$5 billion it has recently been trying to borrow from debt investors, according to information the company shared with investors who asked not to be identified because it is private.
Musk’s company, which is responsible for the AI chatbot Grok, needs the new money, in part, because it has already spent most of what it previously raised, the materials shared with investors indicate.
Between its founding in 2023 and when the debt sale was launched this year, xAI raised US$14 billion via equity fundraising, according to the materials. But as of March 31, only US$4 billion of that was left on the company’s balance sheet, the information showed.
Commitments on the US$5 billion debt sale are due on Tuesday (Jun 17), according to a different person with knowledge of the matter. In addition to the fresh funding, xAI may also get a US$650 million rebate from one of its manufacturers that will help the firm cut costs, people familiar with the matter said.
A spokesperson for the company declined to comment, as did a spokesperson for Morgan Stanley, the bank in charge of xAI’s debt sale.
Huge fundraising rounds have become a standard feature of the fiercely competitive artificial intelligence industry, in which the top players are jockeying to secure the expensive computer chips and infrastructure needed to train advanced AI models like Grok and ChatGPT.
Despite the big spending, potential xAI investors have been told that the company’s valuation grew to US$80 billion at the end of the first quarter, up from US$51 billion at the end of 2024. Investors in previous rounds have included Andreessen Horowitz, Sequoia and VY Capital.
Musk recently decided to merge xAI with his social media company X, but the new funds will go toward the AI operations. BLOOMBERG
in html format .Organize the content with appropriate headings and subheadings ( h2, h3, h4, h5, h6). Include conclusion section and FAQs section with Proper questions and answers at the end. do not include the title. it must return only article i dont want any extra information or introductory text with article e.g: ” Here is rewritten article:” or “Here is the rewritten content:”
