Venture capital firms investing $250M in Musk’s xAI, NY Times reports

Two dozen venture capital firms and other investors are buying about $250M worth of shares in xAI, according to internal documents seen by The New York Times’ Ryan Mac and Kate Conger. Current and former employees of xAI could sell a portion of their shares to investors including TPG (TPG), ARK Invest and Sequoia Capital under a tender offer, which values xAI at $113B, the report stated. The tender offer is separate from other talks held by xAI, in which investors have discussed putting as much as $20B into the company at a valuation of up to $120B, the Times noted. xAI developed the chatbot Grok, which competes with Microsoft-backed (MSFT) OpenAI’s ChatGPT and other AI offerings from Microsoft, Amazon (AMZN), Meta Platforms (META) and Alphabet (GOOG) (GOOGL). Elon Musk, who earlier this year merged xAI with X, the company formerly known as Twitter, is also the CEO of Tesla (TSLA).