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Startups Weekly: Musk raises $6B for AI and the fintech dominoes are falling

June 1, 2024

In a twist that surprises no one but thrills pyromaniacs who revel in watching money go up in flames, Elon Musk’s latest venture, xAI, has casually secured $6 billion in funding. Investors like Valor, a16z, and Sequoia are eagerly placing their bets on the xAI-shaped roulette wheel, with Musk at the helm.

Ivan wonders if Musk’s new market foray will finally bring us an AI so advanced that our already obsolete human brains, thanks to his other audacious projects, will be rendered even more redundant.

Personally, I think it’s completely bonkers. These investors seem to be flush with cash and devoid of skepticism. I can only imagine the pitch: “Imagine an AI so powerful it makes HAL 9000 look like a Roomba.” And, predictably, they threw money at it. Because, well… honestly, I can’t see the logic.

What’s particularly insane is that this $6 billion bonanza is just the latest chapter in Musk’s epic saga of “how to get the world to fund my sci-fi fantasies.” The more stories that emerge about Musk, the more you’d think people would start to hesitate before investing. Yet, this is why I’m a newsletter writer and podcast host (we discussed this on Equity today) and not a venture capitalist. I’d think twice before betting on the guy who gave us self-driving cars that can’t spot fire trucks and rockets that sometimes land but also sometimes explode in a fiery mess.

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