Musk's xAI is valued at $113 billion and launches a $300 million employee stock resale plan

xAI, the artificial intelligence company founded by Elon Musk, is reportedly conducting a $300 million share resale transaction, valuing the company at $113 billion. The transaction allows employees to sell their holdings to new investors and may trigger a subsequent larger round of financing. Previously, xAI completed a financing with a valuation of $45 billion at the end of 2023 and acquired the social platform X (formerly Twitter) in March this year.

xAI was founded in March 2023 and is headquartered in the San Francisco Bay Area, California, with more than 1,200 employees. The company is committed to the development of artificial intelligence, social media and technology. Its main products include AI chatbots Grok, Aurora and PromptIDE. In 2024, xAI's annualized revenue reached $100 million.

In March of this year, xAI acquired Musk's social media platform X (formerly Twitter) in an all-stock transaction, merging the two companies into X.AI Holdings Corp. The transaction valued xAI at $80 billion and X at $33 billion. After the merger, xAI plans to combine its advanced AI capabilities with X's large user base to promote the development of "everything application".

In addition, xAI is building a supercomputer called "Colossus" to train the company's AI language model Grok and support the operation of the X platform. The supercomputer is located in Memphis, Tennessee and is one of the largest AI supercomputers in the world. xAI has also established strategic partnerships with companies such as Microsoft and Telegram to expand its influence.

It is worth noting that Musk recently resigned from his leadership position in the Trump administration's cost-cutting initiative to focus on developing key technology projects such as xAI, X and Tesla. He said he would be committed to integrating the technology and data capabilities of xAI and X to drive the company's further development.

The share resale transaction is expected to bring more capital to xAI to support its expansion and innovation in the field of artificial intelligence. With the improvement of the company's valuation and the advancement of strategic cooperation, xAI is expected to occupy an important position in the global AI competition.