Musk is canvassing the Middle East for investors for his AI company xAI. An injection of fresh petrodollars could boost the young company’s value to $45 billion.
Elon Musk, CEO of many companies, is in talks with investors for xAI, the AI company he founded last year. After a $6 billion capital injection that was completed in the spring, a new round of investment could double the company’s total value to $45 billion. By comparison, OpenAI is worth about triple that.
At least Musk knows where to look for pennies. According to Financial Times, Musk is mainly aiming for Middle Eastern investment. He is holding talks with potential investors from Saudi Arabia. Since he has not always made himself popular there in his capacity as Tesla boss, Qatar is also an option.
Five times more than X
If investors bite, xAI’s valuation could reach $45 billion. That’s more than what Musk paid to take over Twitter ($44 billion, for example). xAI could even be worth four to five times more than what current estimates stick on X. Since Musk took the reigns of X, its value dropped by nearly eighty percent to about another $10 billion.
Musk founded xAI a year ago to compete with OpenAI, Anthropic and co. The best-known result of xAI today is Grok, a ChatGPT-style AI chatbot available only to paying X users.