Elon Musk’s artificial intelligence company, xAI (PC:XAIIQ), has raised $15 billion from investors, according to sources who spoke to CNBC’s David Faber. This adds to the $10 billion round reported in September, which valued the startup at $200 billion. A large portion of the funding will be used to buy graphics processing units, which are crucial for powering large language models, the technology behind many advanced AI systems.
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This massive funding round for xAI is part of a wider trend where AI companies are raising huge sums of money and reaching record-breaking valuations. For example, AI firm Anthropic raised $13 billion in September and tripled its value from just six months earlier. Separately, OpenAI (PC:OPAIQ), led by Sam Altman, sold $6.6 billion in shares in October at a $500 billion valuation. OpenAI is also preparing for an IPO that could push its value as high as $1 trillion, according to Reuters.
Meanwhile, Tesla (TSLA) shareholders recently voted to approve a nearly $1 trillion pay package for Elon Musk and to allow Tesla to invest in xAI. Although the vote passed, Tesla’s general counsel, Brandon Ehrhart, noted that many shareholders abstained, and the company is still deciding on next steps. Nevertheless, this suggests that Musk’s AI and electric vehicle companies are becoming increasingly interconnected, and that investor interest in AI is continuing to grow.
What Is the Prediction for Tesla Stock?
When it comes to Elon Musk’s companies, most of them are privately held. However, retail investors can invest in his most popular company, Tesla (TSLA). Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 10 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $382.54 per share implies 5.6% downside risk.
