Exclusive to members of the LFG network 🚀
LFG Ventures x xAI
Apr 25, 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.
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
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Please note that nothing herein constitutes or should be construed as financial or investment advice. While the information is believed to be accurate, it may include estimates, errors, or inaccuracies. You are responsible for conducting your own due diligence. You are solely responsible for determining whether any investment, investment strategy, security, or related transaction is appropriate for you based on your personal investment objectives, financial circumstances, and risk tolerance. Investors and users should consult with licensed legal professionals and investment advisors for any legal, tax, insurance, or investment advice. Investing in private is extremely speculative and involves a high degree of risk. You should not invest unless you are in a position to lose the entire amount of your investment. No public market currently exists for this opportunity, and there can be no assurance that such a public market will ever exist.