Musk Offers xAI Shares to Twitter Acquisition Backers

According to PANews, Elon Musk has offered 25% of xAI's shares to investors who supported his $44 billion acquisition of Twitter, now known as X. xAI, established last year, aims to compete with companies like OpenAI and Anthropic. Sources familiar with the matter revealed that xAI is set to complete a new $5 billion funding round as early as Wednesday, doubling its valuation to $50 billion in just six months. By the end of this week's funding, xAI will have raised approximately $11 billion in total, which will be used to develop AI models and one of the world's largest supercomputer clusters. This development indicates that due to the significant increase in the startup's value, some of Musk's backers could see substantial profits from their xAI shares, despite incurring billions in paper losses during his acquisition of Twitter.