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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.

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Credit: xAI/X

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

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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.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, [email protected] or his handle on X, @ResidentSponge.

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Elon Musk

Tesla recruits data collection operators for Optimus bot development

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(Credit: Elon Musk | X)

Tesla is recruiting Data Collection Operators to propel the development of its Optimus humanoid robot. The new hires will be critical in supporting Tesla’s data collection team to refine the Optimus bot.

The primary responsibilities of Data Collection Operators include gathering data, addressing engineering requests, and providing equipment feedback. Candidates must demonstrate data-driven decision-making and enthusiasm for robotics.

“We are looking for someone with enthusiasm for the field of robotics and a strong desire to contribute to the development of [the] Tesla Bot,” Tesla noted.

Available shifts for Tesla’s Data Collection Operators include 8:00 AM–4:30 PM, 4:00 PM–12:30 AM, or 12:00 AM–8:30 AM, with flexibility for overtime and weekend work.

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Operators will walk pre-determined test routes daily, wearing motion capture suits and Virtual Reality headsets to perform specific movements based on project needs. Requirements include the ability to walk over seven hours daily while carrying up to 30 pounds, a height between 5’6” and 6’, and comfort with extended VR use. Candidates must also exhibit hand/eye coordination, body awareness, and the ability to travel up to 25% of the time with daily regional driving.

Elon Musk recently showcased Optimus advancements, sharing a dance video highlighting the Tesla bot’s agility and swift progress. Optimus has evolved significantly since its 2022 debut at AI Day, where semi-functional prototypes walked and moved arms. Critics initially questioned its reliance on remote control, but Tesla’s ongoing efforts are silencing doubters.

Morgan Stanley analysts project a $5 trillion market for humanoid robots by mid-century, with Tesla’s Optimus poised to capitalize in industrial and commercial applications. As Tesla pushes the boundaries of robotics, the Data Collection Operator roles underscore its commitment to innovation.

With Optimus advancing, Tesla’s recruitment reflects its strategic focus on AI and robotics. The data collected will refine the Optimus bot. Tesla Optimus could transform industries and position Tesla as a leader in the humanoid robot market, aligning with Musk’s vision for a tech-driven future.

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Elon Musk’s $56B pay package under review by new Tesla committee  

Tesla forms a special board committee to reassess Elon Musk’s 2018 compensation. New performance-based options may be on the table for Musk.

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Wcamp9, CC BY 4.0 , via Wikimedia Commons

Tesla’s board has established a special committee to evaluate CEO Elon Musk’s pay package. The move comes as the company navigates a pivotal shift in its strategic direction.

According to the Financial Times, the new committee could craft a new stock options package. The committee, comprising Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, is tasked with reviewing Musk’s compensation, noted sources familiar with the matter.

The group will explore alternative compensation methods for Musk’s past contributions if the 2018 $56 billion pay package is not reinstated. Any new stock options would be tied to Tesla meeting financial, operational, and share price targets. Musk’s 2018 pay package is currently under appeal.

Last month, Tesla disclosed the formation of a special committee to address compensation matters involving Musk, though details were sparse. In March 2025, Musk appealed to restore his record-breaking $56 billion compensation, arguing that Delaware Chancery Court Judge Kathleen McCormick made “multiple legal errors” in rescinding it. The appeal began on March 11, 2025. Musk along with current and former Tesla directors are challenging McCormick’s application of the entire fairness standard in her ruling.

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Tesla is at a crossroads as it pushes forward with robotaxis and humanoid robots. This shift repositions Tesla as an AI and robotics leader rather than a traditional automaker. Elon Musk is Tesla’s largest shareholder, holding a 13% stake. Earlier this month, Denholm refuted a Wall Street Journal report suggesting the board was seeking a replacement for Musk, reaffirming his central role in the company.

The committee’s review underscores Tesla’s efforts to align Musk’s compensation with its evolving goals amid legal and strategic challenges. As the appeal progresses and Tesla doubles down on AI-driven innovation, the outcome could shape the company’s leadership and market trajectory. With Musk’s vision steering Tesla toward uncharted territory, the compensation debate highlights the high stakes of balancing shareholder value with transformative ambition.

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Tesla CEO Elon Musk confirms Robotaxi will come to Saudi Arabia

Tesla Robotaxi will be in Saudi Arabia one day, Elon Musk confirms.

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Tesla CEO Elon Musk confirmed during the Saudi-U.S. Investment Forum on Tuesday that the company’s Robotaxi platform would eventually land in the Kingdom of Saudi Arabia, essentially confirming the intention to grow a driverless fleet of vehicles outside of the United States.

This is the first time Musk has specifically confirmed Tesla’s intention to expand into Saudi Arabia, although based on the company’s plans, a global expansion is more expected than a confined Robotaxi platform that is limited to only the West.

Musk confirmed during the Investment Forum, where the U.S. agreed with the Saudis to a $600 billion investment pledge, that Robotaxi would eventually expand to the country. The CEO did not mention a specific timeframe, but Tesla is set to launch the Robotaxi platform in Austin, Texas, in June.

“Really, you can think of cars, or future cars, as being robots on four wheels. I think it will be very exciting to have autonomous vehicles here in the Kingdom, if you’re amenable.”

As Tesla’s Full Self-Driving suite is still supervised, it is expanding to other parts of the globe. Earlier this year, it made its way to China for the first time ever, with many giving rave reviews of the driver assistance platform.

Tesla plans to expand to Europe later this year, but the company is still awaiting regulatory approval from EU agencies, something that will likely take some time to complete.

The big takeaway is that the Robotaxi platform is not confined to a single model, like the Cybercab. Instead, Robotaxi could be any Tesla vehicle, as long as it is capable of unsupervised Full Self-Driving. This is something that will require Tesla to work with local authorities to first launch a Supervised version of the suite, which could then expand to the unsupervised FSD platform, enabling a Robotaxi network in the country.

Nevertheless, Tesla’s relationship with the Middle East seems to be good. The company recently launched the Cybertruck in Saudi Arabia, enabling customer orders just last month.

Tesla confirms Cybertruck will make its way out of North America this year

Additionally, Musk’s Starlink was recently given approval for both maritime and aviation use cases, expanding the relationship between the country and the CEO. This was also confirmed during the Investment Forum today.

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