LFG x xAI (2024)
Terms
Valuation: $18b (pre-money); raising $6b
Shares: Series B preferred
Management Fee: 10% one time (instead of 2% annually)
Carry: 20%
Timeline
ASAP: submit firm commitment amount here
May 2: signature and funds must be received by EOD on Thursday, May 2nd
To be clear, do not just wire your funds by May 2nd. Please confirm with your bank that your funds will settle on/before May 2nd.
Click to Commit
About xAI
Massive, trillion dollar market opportunity
Current $60bn market is expected to scale to $1.3 trillion by 2032, achieving 40%+ CAGR
Generative AI will lead to the formation of a new computing platform, potentially as disruptive as mobile and the web in prior decades
xAI has a differentiated approach
xAI is led by a visionary leader in Elon Musk
xAI is taking an open, transparent approach to AI development, in contrast to other companies that have opted for closed, proprietary systems
Access to critical resources within a strong ecosystem
xAI has unique access to the best talent, unique datasets, and deep pools of capital
xAI’s access to the Musk ecosystem enables them to train models based on highly unique and relevant datasets such as social and conversational data, driving data, and geospatial data
Path to monetization
Existing AI companies have demonstrated ability to monetize AI solutions via monthly subscriptions (e.g. Adobe Firefly) and B2B solutions (e.g. OpenAI APIs)
xAI has the potential to generate $40bn+ revenues via B2B and B2C solutions in the long term