xAI Corp., the artificial intelligence startup founded by Elon Musk, is expected to finalize its funding round this week at a valuation of approximately $18 billion, sources familiar with the matter have revealed.

xAI Funding Round Surpasses $6 Billion Target

The exact size of the round has not yet been determined and is not publicly available.  Bloomberg reported that the funding round for xAI, which was originally set at $6 billion, is now expected to exceed expectations. 

This reflects the optimistic view that investors have on xAI's potential.  Supported by prominent investors like Sequoia Capital, the funding highlights the increasing trust in Elon Musk's vision for AI innovation.

However, as negotiations continue, the focus on Musk's impressive track record at Tesla Inc. and SpaceX is a strong selling point for potential investors. 

Using Musk's expertise and access to high-quality data from X, formerly known as Twitter, positions xAI as a leading player in the development of large language models. The LLMs play a crucial role in AI chatbot technology.

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xAI's Funding Pitch Leverages on Elon Musk's Track Record

A person familiar with the matter has revealed that the funding round for the OpenAI rival was being promoted through a pitch deck. 

The deck emphasized the potential selling points for investors, such as Elon Musk's successful track record at Tesla Inc. and SpaceX. 

It also highlighted the fact that xAI will have the ability to train on high-quality data from X.

Accessing data is essential for developing extensive language models, which are the backbone of AI chatbots. 

According to Investing, xAI is striving to establish itself as a strong contender in this field, alongside well-funded companies like OpenAI.

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