BAJAJ BROKING
Elon Musk’s xAI has raised $10 billion to scale its AI infrastructure and chatbot Grok. The funding includes debt and equity, with ongoing discussions potentially valuing the firm as high as $200 billion, as investor interest in generative AI intensifies.
Elon Musk-run xAI has raised about $5 billion in debt and $5 billion in equity, totaling $10 billion in injections. The debt financing was realized mainly through secured notes and loans with rates that went higher than the expected amounts, while the equity tranche received contributions from purposely selected investors.
Also Read: How to Apply for Cedaar Textiles IPO?
The recently obtained $10 billion is proposed towards enhancing data center capabilities, accelerating commercialization in corporate AI solutions, and speeding up the development of xAI's flagship chatbot, Grok.
The fund will be used primarily to support the firm's ventures in terms of the infrastructure and products of generative AI.
Also Read: How to Apply for Silky Overseas IPO?
According to initial reports, the debt facility is yielding approximately 12%. This signals confidence among investors, even as concerns about returns are high
The oversubscription of this debt raise should tell us that the markets in the world for debt have responded well to this offering
Discussions are continuing around raising an amount in equity between $10 billion and $20 billion, putting xAI at a valuation of between $120 billion and $200 billion in the eyes of its investors.
That would mean an increase in the previous valuation by quite a margin.
Also Read: How to Apply for Neetu Yoshi IPO?
Share this article:
Disclaimer :
The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.
The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.
Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.
BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.
Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For more disclaimer, check here : https://www.bajajbroking.in/disclaimer
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading