Musk Hints at Fundraising for xAI... Signals Renewed Focus on Management

At xAI Investor Meeting, Musk Says He Wants to Assign a "Proper Valuation"
Remarks Seen as Signal of Large-Scale Fundraising
Musk's Moves Indicate Renewed Focus on Business Management

Elon Musk, CEO of Tesla, has hinted at plans for additional fundraising for his artificial intelligence (AI) startup xAI. Some interpret this as a sign that Musk, who had devoted significant time to the Department of Government Efficiency (DOGE) following the inauguration of President Donald Trump, is now refocusing on business management.

On April 21 (local time), CNBC, citing sources, reported that Musk expressed his intention to assign a "proper valuation" to xAI during a meeting with the company’s investors last week.

Although Musk did not directly mention fundraising, sources interpreted his remarks as an indication that xAI is preparing for a large-scale capital raise in the near future.

CNBC projected that if xAI, which Musk founded in 2023, secures additional funds just months after raising $6 billion (approximately 8.5 trillion won) at a $50 billion (about 71 trillion won) valuation in the second half of last year, it would mark a significant milestone for the company.

In March, Musk announced the merger of X (formerly Twitter), which he owns, and xAI through a stock swap. At the time, the merged entity was valued at $80 billion (about 113.7 trillion won), while X was valued at $33 billion (about 46.9 trillion won).

Musk further explained the integration of xAI and X by stating, "The futures of xAI and X are intertwined," and added, "Today, we are taking steps to integrate data, models, computing, distribution, and talent."

CNBC interpreted Musk’s recent investor meetings as a possible indication that he is refocusing on the various businesses he manages.

Since January, following the launch of President Donald Trump’s second administration, Musk has served as the head of DOGE, dedicating a significant amount of time to this role. Coincidentally, since joining DOGE, Tesla’s stock price has dropped by more than 40%, raising questions about the company’s stability. In a Fox Business interview on March 10, Musk acknowledged that he was facing "significant difficulties" in managing his businesses while engaged in DOGE activities.

In both political and business circles, there is widespread speculation that Musk may leave the White House next month. Federal regulations for special government employees prohibit working for the government for more than 130 days per year, and Musk’s special government employee status is set to expire at the end of May.