Elon Musk's xAI to raise $20 billion from investors: Report

Elon Musk's xAI Holdings is allegedly in talks with investors to raise nearly $20 billion in funding. According to a Bloomberg report, the funding would value the company at over $120 billion. For those unaware, xAI acquired X (formerly Twitter) in a deal that valued the microblogging platform at $33 billion, allowing Elon Musk-owned AI firm to share its value with co-investors in the company formerly known as Twitter.
As per the report, the amount in the round could be more than $20 billion. The total had not yet been decided, and terms could change, the report added.
Last week, the AI company revealed a new update to its Grok chatbot, enabling it to “see” the world around it. This new feature allows the chatbot to process and interpret visual inputs, marking a significant leap in AI-human interaction.
“Introducing Grok Vision, multilingual audio, and realtime search in Voice Mode. Available now,” said the company.

The enhanced Grok chatbot uses advanced computer vision technology to analyse images and videos, providing context-aware responses. For instance, users can upload a photo of a product, and Grok can identify it, suggest uses, or even recommend similar items. This capability bridges the gap between text-based AI and real-world applications, making Grok more versatile and intuitive.
The vision feature opens up possibilities in e-commerce, education, and healthcare, where visual understanding can enhance user experiences. From diagnosing medical conditions through image analysis to assisting with design projects, Grok’s new ability is expected to revolutionise how AI integrates into daily life.
With this update, xAI positions itself as a strong competitor in the AI space, challenging established players like OpenAI and Google.