Elon Musk in funding talks with Middle East investors to value xAI at $45bn

Elon Musk in funding talks with Middle East investors to value xAI at $45bn

Elon Musk is in talks with some of the largest investors in the Middle East about a fundraising for his artificial intelligence start-up that could roughly double the one-year-old company’s valuation to $45bn. 

According to six people with knowledge of the conversations, xAI is in early talks with new and existing investors, seeking fresh capital to compete with OpenAI, which recently raised more than $10bn in debt and equity, as well as Anthropic and Big Tech rivals including Google and Meta. 

Musk has approached investors in Qatar and Saudi Arabia about backing his AI start-up, according to three of the people. He has also talked to current investors including Sequoia Capital and Valor Equity Partners. 

A potential valuation of $45bn has been floated with investors, close to double the level reached in a funding round this summer, said two of the people. Valor is expected to lead the round and Sequoia to participate, according to two other people with knowledge of the discussions, who cautioned they were at a preliminary stage and that the target valuation and participation could change. 

Sequoia declined to comment. Musk and Valor did not respond to a request for comment.

Mubadala and KKR among groups that have held talks with UK data firm 9fin

Mubadala and KKR among groups that have held talks with UK data firm 9fin

Firms including Abu Dhabi’s Mubadala Capital and private equity giant KKR have held talks to invest in UK corporate debt research start-up 9fin, in a deal that would value the privately held company at around $500mn, according to people familiar with the matter. 

An investment would mark the latest in a flurry of high-profile transactions for businesses that provide information on niche areas of financial markets. 

No final agreement has been reached and may be weeks away, said the people. Other suitors had also been part of the stake sale process. 9fin, Mubadala Capital and KKR declined to comment. 

9fin was founded in 2016 in London by former JPMorgan banker Steven Hunter and Huss El-Sheikh, who previously worked for Deutsche Bank. It employs journalists who break news about leveraged finance deals as well as former deal lawyers and financial analysts who write analysis on investment opportunities.

#UAE markets boosted by earnings and oil prices | Reuters

UAE markets boosted by earnings and oil prices | Reuters

Stock markets in United Arab Emirates closed higher on Friday, lifted by positive earnings results and a jump in oil prices caused by reports Iran is preparing to launch a retaliatory strike on Israel from Iraq in the coming days.

Oil prices rose 2.1% to $74.30 a barrel by 1042 GMT.

In the oil-producing Gulf, higher crude prices spur gains. Banking stocks stand to be the biggest winners from any extra income.

Dubai's main index (.DFMGI), opens new tab started November with 0.7% in gains, rebounding from previous session's loss with leading lender Emirates NBD Bank (ENBD.DU), opens new tab increasing 1.8% and blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 1.7%.

Other gainers included business park operator Tecom Group (TECOM.DU), opens new tab. It rose 0.6% after the firm posted 20% growth in third-quarter net profit to 339.6 million dirhams ($92.46 million).

Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.2% higher, extending gains to sixth straight session, supported by a 2% hike in UAE's largest lender First Abu Dhabi Bank (FAB.AD), opens new tab and 2.9% jump in UAE's third largest lender Abu Dhabi Commercial Bank (ADCB.AD), opens new tab.

The Dubai index increased by 3.2%, its biggest weekly gains since early November Last year. On a monthly basis the index recorded 1.9% growth, according to LSEG data.

Abu Dhabi index advanced 1.6%, its highest weekly rise in nearly two months.