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TechCheck

Elon Musk’s Web of Loyalists Back xAI 5/28/24

TechCheck

CNBC

Management, Cnbc, Tech, Faang, Investing, Business, Disruptors, Technology

4.566 Ratings

🗓️ 28 May 2024

⏱️ 6 minutes

🧾️ Download transcript

Summary

Elon Musk's startup xAI is now valued at $24 billion after raising $6 billion in a fresh round of funding. The new raise is backed by a web of Musk's most loyal insiders – including venture capitalists like Andreessen Horowitz and Sequoia, who also invested in his acquisition of X, but also includes institutional support from Fidelity and some new faces.

Transcript

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0:00.0

Elon Musk startup X-A-I now valued at $24 billion after raising $6 billion in a fresh round of funding.

0:07.0

Deirdrebosa is looking at some of the investors backing the tech billionaire in today's tech check.

0:11.4

Morning, D.

0:12.4

Hey, good morning, Carl. So call them the Musk insiders.

0:15.0

As the Musk Universe expands, a loyal group is emerging,

0:18.0

and they're investors that are able to look past losses, reputational risk.

0:22.0

They continue to invest in his ventures.

0:24.8

Sequoy Capital Andresen Horwitz, they were both part of the X- AI $6 billion round.

0:29.9

They also chipped in 800 million and 400 million respectively for Musk's Twitter acquisition in

0:35.3

2022.

0:36.3

Now back then Ben Horowitz tweeted, we invested because we believe in the co-founder,

0:41.4

Evan Jack's vision to connect the world and we believe in

0:44.6

Elon's brilliance to finally make it what it was meant to be. Since that

0:48.4

tweet the company formerly known as Twitter has lost billions of dollars in

0:52.2

value but two years in in venture capital that's Twitter has lost billions of dollars in value.

0:52.8

But two years in, in venture capital,

0:54.9

that's a relatively short amount of time.

0:56.7

And the attitude towards failure here,

0:59.1

it's generally far more accepting

1:01.0

compared to many other business environments.

1:03.4

A CEO source operating in AI tells me that the ex-AI research team is stellar

1:09.3

and Musk will have access to special data sets with Twitter and Tesla. Now the more interesting

...

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