SpaceX and xAI Garnering Multi-Billion Dollar Agreements: Major Achievements in Valuation
In a significant development, Elon Musk's AI start-up, xAI, has raised a staggering $5 billion in a funding round, pushing its valuation to an impressive $45 billion. This marks a near-double increase in the company's value compared to a few months ago.
The funding round, which reportedly began last month, saw all shares quickly snapped up by existing investors. This news follows a series of valuation jumps in Musk's private companies, as reported by the Financial Times.
Musk, who also heads xAI, is no stranger to ambitious projects. The AI start-up is constructing a supercomputer named Colossus in Memphis and developing an AI tool named Grok, which competes with systems like ChatGPT.
Meanwhile, SpaceX, another of Musk's ventures, is planning to sell shares at $135 each in December, aiming to raise its valuation to over $250 billion. The funds from this sale will reportedly be used to fund SpaceX's mission to reach Mars, which is being partially funded by the growing Starlink satellite internet constellation.
In a surprising turn of events, Musk and biotech entrepreneur Vivek Ramaswamy have been named to head a new 'government efficiency' department by Donald Trump. This department, aimed at cutting bureaucracy, could potentially benefit SpaceX in securing government deals. However, the specific impact of this government department on xAI or any other company remains unclear.
It's worth noting that Musk collaborated with the Trump administration's Department of Government Efficiency on AI initiatives before his departure, but no specific individual is named as currently working with him on future projects within that department.
The Financial Times has not reported on the potential impact of Trump's government department on Musk's businesses. If successful, the new funding round could value xAI at $75 billion, almost doubling its current valuation. Discussions for another funding round are reportedly happening early next year.
This article does not provide specific details on how Trump's government department could impact xAI or any other company. Nonetheless, the developments in Musk's businesses continue to captivate the tech and business worlds, with his close ties to Trump potentially playing a role in shaping the future of these ventures.
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