Is xAI seeking financing? Musk stated that he will seek a reasonable valuation for xAI

Wallstreetcn
2025.04.22 01:51
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Elon Musk is seeking a reasonable valuation for his xAI, which may signal the launch of a new round of large-scale financing. According to insiders, Musk mentioned in a conference call with investors that the company's potential annual revenue could reach $1 billion or more. If the financing is confirmed, it will be an important milestone for xAI. xAI had previously planned to raise up to $6 billion at a valuation of $50 billion to purchase NVIDIA chips. Musk founded xAI in 2023 and stated that its goal is to understand the nature of the universe

According to CNBC, Musk is seeking a "reasonable valuation" for his xAI, which is interpreted as a signal that a new round of large-scale financing is about to begin.

Insiders revealed to CNBC's David Faber that Musk raised the request for a "reasonable valuation" of the company during a conference call with xAI investors last week.

Although the Tesla CEO did not explicitly mention upcoming financing, sources interpreted these comments as a sign that xAI will undergo large-scale financing in the near future.

Sources also disclosed that during the call with investors, the company discussed its potential annual revenue reaching $1 billion or more.

This year, Musk has devoted most of his time to DOGE, raising questions about the stability of his companies, especially as Tesla's stock price has fallen more than 40% this year.

Reports indicate that his appearance on this call may signal that he is refocusing on his business entities.

Another Important Milestone for xAI May Be Approaching

If the new round of financing is confirmed, it will mark another significant milestone for xAI.

Just a few months ago, CNBC reported that xAI was raising up to $6 billion at a $50 billion valuation to purchase 100,000 NVIDIA chips.

This funding includes $5 billion from Middle Eastern sovereign funds and $1 billion from other investors.

Musk announced the establishment of this AI startup in July 2023. At that time, the company stated its goal was to "understand the true nature of the universe." xAI launched a chatbot named Grok last year.

Wall Street Insights previously mentioned that at the end of March this year, Musk had his AI startup xAI acquire the X platform (formerly Twitter) for a deal valued at $33 billion. Including $12 billion in debt, X's value reached $45 billion.

At that time, Musk posted on X:

The future of xAI and X is closely linked, and today we officially took a step towards integrating data, models, computation, distribution, and talent. By combining xAI's advanced AI capabilities and expertise with X's vast influence, this combination will unleash tremendous potential.

Wedbush analysts believe this is Musk's first step in integrating all his businesses, making him a key player in the AI field.

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