Musk’s xAI Secures $10B as Trump Feud Reignites
Elon Musk’s AI firm xAI has raised $10 billion, split between secured debt and equity investments, to enhance its Colossus supercomputer and Grok chatbot. The funding round was oversubscribed, indicating strong investor interest. This capital boost comes as competitors like OpenAI and Anthropic secure significant funding, with OpenAI valued at $300 billion after a $40 billion raise. Musk integrated Grok into his social media platform X, which he sold to xAI for a valuation of $80 billion. Tensions have resurfaced between Musk and former President Trump, with Trump criticizing Musk's reliance on government subsidies. Musk responded by advocating for cuts to federal support. Senator Cynthia Lummis proposed an amendment to a tax bill to alleviate tax burdens on crypto users, while a Democrat amendment to restrict government officials from owning cryptocurrencies was rejected.
