Tesla Startup xAI Explores 8 Trillion Investment... Including Korea

Elon Musk, CEO of Tesla, is reported to be in discussions to raise up to $6 billion (approximately 8 trillion KRW) in investment for his artificial intelligence (AI) startup, xAI.

[Image source=Reuters Yonhap News]

On the 26th (local time), the Financial Times (FT) reported that xAI has been seeking investments from wealthy individuals and investors in places such as Hong Kong over the past few weeks.

The outlet cited sources saying that Musk has also approached sovereign wealth funds in the Middle East as well as investors in Korea and Japan.

Musk is said to have proposed a valuation of up to $20 billion (approximately 26.7 trillion KRW) for xAI.

Earlier, Bloomberg reported on the 21st that xAI had secured a $500 million (approximately 667.8 billion KRW) investment commitment, but Musk denied this on the social media platform X (formerly Twitter), stating it was not true.

In documents submitted last month to the U.S. Securities and Exchange Commission (SEC), xAI revealed plans to raise $1 billion (approximately 1.3355 trillion KRW), with Musk having already secured $135 million (approximately 180.3 billion KRW). The investors in xAI have not been disclosed.

Musk founded xAI in July last year as a rival to ChatGPT developer OpenAI. Since then, xAI has released its first AI chatbot, Grok.

This content was produced with the assistance of AI translation services.