Elon Musk’s xAI reportedly looks to raise $300M in tender offer

Billionaire Elon Musk’s AI startup, xAI, is reportedly launching a $300 million share sale that values the company at $113 billion.

The secondary stock offering, which comes after xAI acquired Musk’s social media platform, X, for $33 billion, will allow staff to sell shares to new investors. The tender offer will likely precede a larger investment round in which xAI will offer new equity to outside backers.

As The Financial Times notes, xAI is looking to raise additional cash while Musk works to shift his attention from politics to his various companies, which have suffered during the tech mogul’s time in Washington. Shares of Tesla hit a six-month low in early March, while X has experienced numerous lengthy outages. Meanwhile, xAI has repeatedlymissed its own deadlines to ship an upgrade to its flagship AI model, Grok.