Elon Musk's xAI in talks to raise up to $6bn - report

(Sharecast News) - Elon Musk's xAI is reportedly in talks to raise up to $6bn, as the Tesla and X chief looks to global investors, including in Hong Kong, to finance his challenge to Microsoft-backed OpenAI. The Financial Times on Friday cited multiple people familiar with the matter as saying that Musk's artificial intelligence start-up has courted wealthy individuals and investors around the world in recent weeks.

It was understood these talks have included family offices in Hong Kong, the territory that is increasingly controlled by Beijing.

Three people with knowledge of the talks said Musk hoped to raise as much as $6bn in fresh equity capital for xAI at a proposed valuation of $20bn. However, the sources cautioned that negotiations were ongoing and that Musk was still testing investor appetite for such large sums.

One person told the FT he had also targeted sovereign wealth funds in the Middle East, while others said investors in Japan and South Korea had been approached.