xAI, the artificial intelligence (AI) firm started by Elon Musk and incorporated into his social media platform X (Grok), is actively pursuing a funding round that aims to raise $15 billion at a pre-money valuation of $230 billion. The funding round is expected to close before the end of the year.
xAI completed a $10 billion round just this past September at a $200 billion valuation and a debt round in October, raising $12.5 billion. In the past, big VCs and other investors have supported these funding rounds with expectations that they will continue to support the company, which has scaled rapidly. But xAI also has stiff competition with OpenAI, Gemini, etc. The funding round is expected to support infrastructure expansion, like purchasing NVIDIA chips, as the AI sector race continues.
Republic, the largest online investment platform for private securities, is providing a path for smaller investors to participate in the funding round.
According to Republic, it will create a Special Purpose Vehicle (SPV) to purchase shares. This is not a Mirror Token offering but an entity that will hold shares of xAI. Republic has capped the offering to 99 individual investors.
The shares involved in the SPV will be priced based on the $230 billion valuation. More details are available for registered investors.
Republic continues to provide a path for capital formation for early-stage ventures as well as opportunities for smaller investors to participate in the booming private securities marketplace. A firm like xAI is more mature and thus represents lower risk than a startup.
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