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- Musk's X in talks to raise money at $44 billion valuation
Musk's X in talks to raise money at $44 billion valuation
Noel Moldvai
February 20, 2025
TL;DR. Elon again takes the crown as our top story (I'm sorry), but squeezed between our two Musk updates is… drumroll… JD Vance going full e/acc on European bureaucrats. How powerful will it be that finally the VP of the most powerful country on Earth actually understands the opportunities artificial intelligence presents? Time will tell.
Musk's X in talks to raise money at $44 billion valuation
Elon Musk’s X is in talks to raise funds at a $44 billion valuation, the same price he paid in 2022. Despite initial struggles and investor write-downs, X’s outlook has improved as some advertisers return. Musk’s rising influence, Trump’s election victory, and strong valuations for his other companies have boosted confidence, helping banks sell debt tied to the acquisition. Morgan Stanley led the latest loan sale, attracting institutional investors betting on X’s financial recovery. Meanwhile, Musk’s AI startup, xAI, is also seeking to raise $10 billion at a higher valuation. The X funding talks are ongoing, with details subject to change.
JD Vance's AI speech in Europe: "AI future will not be won by hand-wringing about safety"
JD Vance’s AI speech in Paris emphasized a hands-off, pro-acceleration approach, putting the U.S. in direct conflict with Europe's strict AI regulations. He rejected concerns about AI safety, arguing that overregulation stifles innovation and benefits incumbents. The speech underscored the Trump administration’s commitment to minimal oversight, open competition, and AI-driven economic growth. Critics worry about the lack of a clear plan to address AI’s impact on jobs, as automation could outpace workforce adaptation. The speech signals rising global tensions over AI governance, with the U.S., Europe, and China pursuing vastly different regulatory strategies.
Musk's xAI unveils Grok-3 AI chatbot to rival ChatGPT, China's DeepSeek
Elon Musk’s xAI has launched Grok-3, its latest chatbot, aiming to rival OpenAI, Google, and China’s DeepSeek. The model, available to Premium+ users on X, introduces DeepSearch, a reasoning-based AI tool. Despite advancements, some analysts question if Grok-3’s improvements justify its high training costs. xAI is expanding its Memphis-based supercomputer, Colossus, to train future models. Meanwhile, Musk’s investor consortium recently attempted a $97.4 billion takeover of OpenAI’s nonprofit assets, which was rejected. With Grok-3, xAI is pushing aggressively to stay competitive in the AI arms race.
Microsoft unveils Majorana 1, the world’s first quantum processor powered by topological qubits
Microsoft has unveiled Majorana 1, a breakthrough quantum processor powered by a topoconductor, marking a major step toward scalable quantum computing. The device features topological qubits designed for fault-tolerant computation, with a roadmap targeting a million-qubit system. Backed by DARPA, Microsoft aims to accelerate quantum computing’s real-world applications, emphasizing stability, error correction, and digital precision. The company’s advancements in topological superconductivity enable more reliable quantum operations. With its latest agreement, Microsoft commits to building a fault-tolerant quantum prototype in years, not decades, positioning itself as a leader in the race toward practical quantum computing.
Safe Superintelligence, Ilya Sutskever’s AI startup, is reportedly close to raising roughly $1B
Safe Superintelligence, founded by former OpenAI chief scientist Ilya Sutskever, is nearing a $1 billion funding round at a $30 billion valuation. Greenoaks Capital Partners is leading with a $500 million investment. The startup, backed by Sequoia and Andreessen Horowitz, isn’t generating revenue yet and has no immediate plans to commercialize AI products.
Regulatory changes are re-shaping the secondary market
The secondary market has grown into a dynamic sector, offering opportunities for liquidity, diversification, and risk management within investment portfolios. This evolution highlights the importance of understanding regulatory changes across both public and private markets.
As secondary markets continue to develop, the regulatory landscape is also shifting. This overview provides a general perspective on recent trends but should not be interpreted as exhaustive or up-to-date regulatory guidance.
Quick Takes
Cheerio! Until next week.
-Noel