Elon Musk’s xAI reportedly looks to raise $300M in tender offer

Elon Musk's AI venture, xAI, is set to initiate a significant $300 million share sale, placing the company's valuation at an impressive $113 billion. This secondary stock offering follows xAI's acquisition of Musk's social media platform, X, for $33 billion and will enable employees to liquidate shares to new investors. This tender offer appears to be a precursor to a more extensive funding round, where xAI aims to provide new equity opportunities to external investors. According to The Financial Times, this fundraising effort comes as Musk aims to redirect his focus from political matters to his varied business interests, which have faced challenges during his political engagements. Tesla's stock recently hit a six-month low, and X has dealt with multiple extended outages. Additionally, xAI has faced delays in rolling out updates for its primary AI model, Grok, missing several of its own deadlines.