Elon Musk’s AI startup, xAI (PC:XAIIQ), is expected to finalize a $15 billion funding round next month that will value the company at $230 billion before the new funds are added, according to CNBC sources. The deadline for investor allocation was Tuesday, and the deal is set to close on December 19. This development is in line with earlier reports, although Musk had previously called the fundraising story “false” in a post on X.
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Nevertheless, reports say that xAI will likely spend a large portion of the funding on graphics processing units (GPUs), which are essential for running large language models. Earlier reports in September stated that the company was seeking to raise $10 billion at a $200 billion valuation, which highlights how quickly investor interest has surged.
Unsurprisingly, other AI firms are also seeing huge inflows. OpenAI (PC:OPAIQ), led by Sam Altman, recently closed a $6.6 billion share sale at a $500 billion valuation and is reportedly exploring a $1 trillion IPO. Meanwhile, Anthropic (PC:ANTPQ) raised $13 billion in September, which tripled its valuation from earlier in the year.
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 $383.04 per share implies 7.7% downside risk.
