AccordingtoCNBC's Faber, the investors present on the call interpreted this statement as an indication of an upcoming funding round. While speculative, Faber believes the funding round could be as large as $25 billion, and bestow a valuation of between $150 billion and $200 billion on xAI.
BearinmindthatElonMusktookX(thencalledTwitter)privatebackin2022ina$44billiondeal.Sincethen,MuskhasmanagedtostemX's cash bleed, with the company reportedly generating $1.2 billion in adjusted EBITDA in 2024.
EventhoughxAI's Grok LLM is already largely comparable with OpenAI'scutting-edgemodels,theColossus2wouldsignificantlyuptheante,andcouldfeasiblychallengeOpenAI's apex position in the AI sphere.