Elon Musk Redirects Focus to xAI Amid DOGE Role Transition
Inside Sources and Speculated Valuation
After dedicating substantial time to his role as the head of the Department of Government Efficiency (DOGE), sources suggest that Elon Musk might be redirecting his focus towards his entrepreneurial ventures, particularly his AI startup, xAI. Reports indicate that Musk participated in a recent xAI investor call, aiming to establish a reliable valuation for his burgeoning company. While no official capital funding round has been announced, insiders anticipate such an event in the near future. During the call, a potential $1 billion run rate was mentioned, though the sources remain cautious about confirming these specifics.
Potential Funding and Strategic Acquisitions
Earlier this year, there were whispers that xAI was attempting to secure up to $6 billion with a projected valuation of $50 billion. The funding could likely originate from Middle Eastern sovereign wealth funds and global investors. The earmarked capital is reportedly intended for the procurement of 100,000 Nvidia chips, integral to xAI’s AI infrastructure.
Recent Developments and Business Mergers
xAI has recently merged with Elon Musk’s social media platform, X, in a complete stock exchange deal. According to reports, Musk valued xAI at $80 billion and X at $33 billion. These strategic moves signal a possible expansion in the confluence of artificial intelligence and social media under Musk’s oversight.
Debut with Grok Chatbot
Launched in July 2023, xAI introduced the Grok chatbot to the market last year, positioning itself against leading chatbots like Anthropic’s Claude and OpenAI’s ChatGPT. As per xAI’s claims, Grok’s capability in real-time internet knowledge facilitated its launch after merely two months of training.
Alignments with AI Infrastructure Partnerships
In March, xAI, along with Nvidia, joined a $30 billion AI Infrastructure Partnership, backed by prominent players like BlackRock, Microsoft, and Abu Dhabi AI investment group MGX. This alliance aspires to raise up to $100 billion aimed at AI development, particularly focusing on creating next-generation AI-ready data centers to meet the evolving needs of generative AI models.
Impact on Musk’s Other Ventures
While Musk steers xAI towards expansive goals, his role as CEO of Tesla has come under scrutiny due to a reported 40% decline in Tesla shares this year. Observers are questioning the extent of Musk’s management bandwidth and how his various commitments might affect Tesla’s performance.
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Note: This article is inspired by content from https://www.pymnts.com/artificial-intelligence-2/2025/report-new-valuation-push-for-elon-musks-xai/. It has been rephrased for originality. Images are credited to the original source.