xAI Seeks $300M in Tender Offer, Valuing Startup at $113B

xAI Targets $300 Million in Tender Offer

Elon Musk's artificial intelligence startup, xAI, is reportedly seeking $300 million in a new tender offer. This move values the company at a staggering $113 billion.

This secondary stock offering allows existing xAI staff to sell shares to new investors. It follows xAI's recent $33 billion acquisition of Musk's social media platform, X, and likely precedes a larger funding round involving new equity offerings to outside investors.

Challenges Amidst Funding Efforts

The Financial Times reports that xAI is pursuing additional capital as Musk aims to refocus on his companies after a period of political engagement. This shift comes as Tesla's share price recently hit a six-month low and X has faced numerous outages.

Furthermore, xAI has experienced delays in delivering an upgraded version of its flagship AI model, Grok, missing several self-imposed deadlines.

Despite these challenges, the tender offer suggests continued investor interest in xAI and its potential within the rapidly evolving AI landscape.