Elon Musk's xAI to give tough competition to ChatGPT

Billionaire Elon Musk’s new start-up artificial intelligence company, xAI, could become worth $20 billion, by the end of this week as investors show massive interest in the first funding round, the New York Post reported.

Earlier on Thursday, Bloomberg reported that xAI is near closing its first funding round at $18 billion, however, due to a massive spike in investor interest, the value has exceeded expectations.

Musk’s xAI, which powers the chatbot Grok, could raise up to $7 billion to $8 billion, thanks to its $20 billion valuation, as it competes with Google’s Gemini AI and OpenAI’s ChatGPT.

Before it was expected that the start-up would only be able to raise $6 billion at the valuation of $18 billion.

According to reports, the Tesla founder has asked investors to wire in the money by the end of the week so that he can close the first funding round window.

A source close to Musk said: "People are asking for a second close so they can put more money in."

This overwhelming response is due to Musk’s claims that he will incorporate Tesla’s computer power to support xAI.

As per reports, Musk is not accepting cash from China including Hong Kong.