Musk's xAI valued at $50 billion, investors receive 25% equity compensation.

Entrepreneur Elon Musk has reportedly offered a quarter stake in his artificial intelligence company, xAI, to investors backing his huge deal to acquire the social media platform. Founded last year, the company aims to compete with the industry's leading AI companies.

According to sources, xAI is close to completing a new round of funding of $5 billion. The company's valuation doubled to $50 billion in just six months. At the end of this round, xAI will raise approximately $11 billion in funding, which will be used to develop AI models and build one of the world's largest supercomputer clusters.

It is worth noting that some investors who had supported Musk's acquisition of the social media platform are expected to earn a significant return by holding a stake in xAI due to the significant increase in the value of xAI. These investors have previously faced billions of dollars in paper losses in acquisitions of social media platforms.

This development demonstrates the rapid changes in the technology startup sector and the balancing of risks and opportunities by investors across different projects. With the continuous advancement of AI technology, investments and valuations in related fields may continue to attract market attention.