- The Pulse by Augment
- Posts
- Scale AI seeking massive valuation and the X's are now one
Scale AI seeking massive valuation and the X's are now one
Noel Moldvai
April 03, 2025
TL;DR. I promise we don’t TRY to put Elon into every edition but this is just too good and he is kind of everywhere all at once! Elon Musk has officially merged xAI and X in a massive $113B all-stock deal while Scale AI is aiming for a nearly doubled valuation in a new tender offer. Can you blame them? They are the data layer of (nearly) every major AI player.
Scale AI seeking valuation as high as $25B in potential tender offer
Scale AI is on the rise and seeking to increase it’s valuation by $11.2B since its last round last year. Backed by Nvidia, Amazon, and Meta, the startup plays a key role in providing labeled data critical to training AI models, as investor demand for AI infrastructure remains red-hot.
How is Soft Bank funding its mega investment in OpenAI? A lot of debt
SoftBank is pouring capital into OpenAI, betting big on the AI revolution. The first $10B is secured through Japanese lenders, with another $30B expected by 2026. S&P warns this may weaken SoftBank’s financial health, highlighting the risks of such a capital-heavy AI wager.
xAI acquires X
The Musk companies have merged, valuing xAI at $80B and X at $33B. The merger blends xAI’s advanced AI systems with X’s 600M-user platform, uniting data, compute, and distribution to build a platform focused on truth, scalability, and accelerating human progress.
Augment deep dive series: Perplexity
Join Augment and Sacra for session #2 of our deep-dive livestream series, where we explore Perplexity, a conversational search engine shipping fast and planning to raise at a huge valuation.
Quick Takes
Cheerio! Until next week.
-Noel