Elon Musk's XAI Plans To Collect Funding With A Valuation Of IDR 627.3 Trillion

JAKARTA - Elon Musk's artificial intelligence (AI) startup, xAI, is in talks with investors for a funding round that could assess the company at around US$40 billion (Rp627.3 trillion).

This was reported by the Wall Street Journal on Tuesday, October 29. This discussion is still in its early stages, so that conditions can change or talks can be canceled.

Previously, xAI received funding of US$6 billion (Rp94 trillion) in the series B funding round last May, with a post-investment valuation of US$24 billion (Rp376.3 trillion). Investors involved include Andreessen Horowitz and Sequoia Capital. Musk launched xAI in July 2023 as an alternative to OpenAI's ChatGPT.

In March, xAI announced plans to open open-source access to "Grok," a ChatGPT competitor, providing the public with the opportunity to experiment with the technology. The move is in line with other companies, such as Meta and Mistral in France, which also have an open-source AI model.

Other big companies, such as Alphabet's Microsoft and Google-backed OpenAI, are taking the lead in fierce AI-generative competition. Earlier last October, OpenAI received funding of USD 6.6 billion (IDR 103.5 trillion), which could assess the company to USD 157 billion (IDR 2.4 quadrillion).