Elon Musk offers XAI 25% ownership to investors supporting his $44 billion acquisition of Twitter

Elon Musk has offered xAI investors who support his $44 billion acquisition of Twitter a 25% stake. xAI, founded last year, aims to compete with companies like OpenAI and Anthropic. Insiders revealed that xAI will complete a new round of $5 billion financing as early as Wednesday, doubling its valuation to $50 billion in just six months. By the end of this week’s financing, xAI will have raised a total of approximately $11 billion to fund the massive expenses required to build AI models and one of the world’s largest Supercomputer clusters. This means that some of Musk’s supporters who suffered losses of billions of dollars during the acquisition of Twitter can make substantial profits from their xAI shares. Investors in both of Musk’s companies, including Fidelity, Oracle co-founder Larry Ellison, Saudi Prince Alwaleed bin Talal, Twitter co-founder Jack Dorsey, and Silicon Valley venture capital firms Sequoia Capital and Andreessen Horowitz (a16z), will benefit.