Elon Musk
xAI poised for funding surge as Musk seeks “proper value” for AI startup: report
The report was initially shared by CNBC’s David Faber during a segment on the Faber Report.
During a recent investor call, Elon Musk reportedly hinted at a major valuation adjustment for his artificial intelligence startup, with the Tesla and SpaceX CEO stating that he was looking to put a “proper value” on xAI.
The report was initially shared by CNBC’s David Faber during a segment on the Faber Report.
Investor Call Sparks Speculation
Citing sources who were reportedly involved in the call, Faber noted that while Musk did not specifically state that he was looking to initiate another funding round, his comments about a “proper valuation” for xAI were interpreted by Faber’s sources that xAI may be setting the stage for a notable capital raise in the near future.
“Let me give you some takeaways from the call itself. It was with a number of the companies, the investors in xAI going over a number of important things, that included the closing of the X transaction… Remember, xAI and X are now one company valuing X at $33 billion going in. xAI had a value of as much as $80 billion.
“What I’ve heard is the company is setting up for another capital raise of great significance… But on the call, Musk is quoted as having said, ‘We’re going to put a proper value on the company in reference to xAI,’ and people took that to mean, and again this is speculation, that they will have a large raise,” Faber stated.
xAI’s Growth and Ambitions
Launched in July 2023, xAI introduced its Grok chatbot to challenge Anthropic’s Claude and OpenAI’s ChatGPT. In March, Musk merged xAI with X. “xAI and X’s futures are intertwined,” Musk wrote on X. “Today, we officially take the step to combine the data, models, compute, distribution and talent.”
The merger leverages X’s data to train Grok, boosting xAI’s competitive edge. xAI has also made a lot of headway in the artificial intelligence space, thanks in part to its speed, which allowed it to set up Colossus, a supercomputer cluster comprised of 100,000 GPUs, in just 122 days. Colossus has since been expanded to 200,000 GPUs, and plans are underway to expand the supercomputer even further.
Elon Musk
SpaceX Starship V3 gets launch date update from Elon Musk
The first flight of Starship Version 3 and its new Raptor V3 engines could happen as early as March.
Elon Musk has announced that SpaceX’s next Starship launch, Flight 12, is expected in about six weeks. This suggests that the first flight of Starship Version 3 and its new Raptor V3 engines could happen as early as March.
In a post on X, Elon Musk stated that the next Starship launch is in six weeks. He accompanied his announcement with a photo that seemed to have been taken when Starship’s upper stage was just about to separate from the Super Heavy Booster. Musk did not state whether SpaceX will attempt to catch the Super Heavy Booster during the upcoming flight.
The upcoming flight will mark the debut of Starship V3. The upgraded design includes the new Raptor V3 engine, which is expected to have nearly twice the thrust of the original Raptor 1, at a fraction of the cost and with significantly reduced weight. The Starship V3 platform is also expected to be optimized for manufacturability.
The Starship V3 Flight 12 launch timeline comes as SpaceX pursues an aggressive development cadence for the fully reusable launch system. Previous iterations of Starship have racked up a mixed but notable string of test flights, including multiple integrated flight tests in 2025.
Interestingly enough, SpaceX has teased an aggressive timeframe for Starship V3’s first flight. Way back in late November, SpaceX noted on X that it will be aiming to launch Starship V3’s maiden flight in the first quarter of 2026. This was despite setbacks like a structural anomaly on the first V3 booster during ground testing.
“Starship’s twelfth flight test remains targeted for the first quarter of 2026,” the company wrote in its post on X.
Elon Musk
Elon Musk’s Grokipedia is getting cited by OpenAI’s ChatGPT
Some responses generated by OpenAI’s ChatGPT have recently referenced information from Grokipedia.
Some responses generated by OpenAI’s ChatGPT have recently referenced information from Grokipedia, an AI-generated encyclopedia developed by rival xAI, which was founded by Elon Musk. The citations appeared across a limited set of queries.
Reports about the matter were initially reported by The Guardian.
Grokipedia references in ChatGPT
Grokipedia launched in October as part of xAI’s effort to build an alternative to Wikipedia, which has become less centrist over the years. Unlike Wikipedia, which is moderated and edited by humans, Grokipedia is purely AI-powered, allowing it to approach topics with as little bias as possible, at least in theory. This model has also allowed Grokipedia to grow its article base quickly, with recent reports indicating that it has created over 6 million articles, more than 80% of English Wikipedia.
The Guardian reported that ChatGPT cited Grokipedia nine times across responses to more than a dozen user questions during its tests. As per the publication, the Grokipedia citations did not appear when ChatGPT was asked about high-profile or widely documented topics. Instead, Grokipedia was referenced in responses to more obscure historical or biographical claims. The pattern suggested selective use rather than broad reliance on the source, at least for now.
Broader Grokipedia use
The Guardian also noted that Grokipedia citations were not exclusive to ChatGPT. Anthropic’s AI assistant Claude reportedly showed similar references to Grokipedia in some responses, highlighting a broader issue around how large language models identify and weigh publicly available information.
In a statement to The Guardian, an OpenAI spokesperson stated that ChatGPT “aims to draw from a broad range of publicly available sources and viewpoints.” “We apply safety filters to reduce the risk of surfacing links associated with high-severity harms, and ChatGPT clearly shows which sources informed a response through citations,” the spokesperson stated.
Anthropic, for its part, did not respond to a request for comment on the matter. As for xAI, the artificial intelligence startup simply responded with a short comment that stated, “Legacy media lies.”
Elon Musk
Elon Musk shares insights on SpaceX and Tesla’s potential scale
In a pair of recent posts on X, Musk argued that both companies operate in domains where growth is not linear, but exponential.
Elon Musk outlined why he believes Tesla and SpaceX ultimately dwarf their competitors, pointing to autonomy, robotics, and space-based energy as forces that fundamentally reshape economic scale.
In a pair of recent posts on X, Musk argued that both companies operate in domains where growth is not linear, but exponential.
Space-based energy
In a response to a user on X who observed that SpaceX has a larger valuation than all six US defense companies combined, Musk explained that space-based industries will eventually surpass the total economic value of Earth. He noted that space allows humanity to harness roughly 100,000 times more energy than Earth currently uses, while still consuming less than a millionth of the Sun’s total energy output.
That level of available energy should enable the emergence and development of industries that are simply not possible within Earth’s physical and environmental constraints. Continuous solar exposure in space, as per Musk’s comment, removes limitations imposed by atmosphere, weather, and land availability.
Autonomy and robots
In a follow-up post, Elon Musk explaned that “due to autonomy, Tesla is worth more than the rest of the auto industry.” Musk added that this assessment does not yet account for Optimus, Tesla’s humanoid robot. As per the CEO, once Optimus reaches scaled production, it could increase Earth’s gross domestic product by an order of magnitude, ultimately paving the way for sustainable abundance.
Even before the advent of Optimus, however, Tesla’s autonomous driving system already gives vehicles the option to become revenue-generating assets through services like the Tesla Robotaxi network. Tesla’s autonomous efforts seem to be on the verge of paying off, as services like the Robotaxi network have already been launched in its initial stages in Austin and the Bay Area.