Elon Musk has recently been in the news for his vain attempt to buy the nonprofit that controls OpenAI, but that’s not all. It has recently come to light that Musk’s artificial intelligence company, xAI, is canvassing potential investors for a roughly $10 billion funding round. This could value the company at an estimated $75 billion.
According to media reports, existing investors, including Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners, are in discussions to participate in the transaction. However, the terms of the round aren’t finalized yet and may change.
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According to data compiled by PitchBook, xAI was last valued at $51 billion. The startup was launched by Musk in 2023, a rival to OpenAI. xAI has recently revealed that Grok3, its AI chatbot, is in the final stages of development and will be released in a week or two.
“Grok 3 has very powerful reasoning capabilities, so in the tests that we’ve done thus far, Grok 3 is outperforming anything that’s been released, that we’re aware of, so that’s a good sign”.
-Elon Musk
With the competition in the AI world heating up fast, OpenAI CEO Sam Altman has recently revealed its plans around GPT-5, and how the company is going to work on simplifying its offerings. He stated that he realizes how the company’s models and product offerings are getting complicated, bringing a solution for user ease.
“We hate the model picker as much as you do and want to return to magic unified intelligence”.
-Sam Altman.
Currently, users are required to manually select various AI models for different tasks. According to Altman, GPT-4.5, internally known as Orion, will be the company’s final “non-chain-of-thought model.” After its release, the company will unify o-series and GPT-series models.
It will do so by offering a system that can use all of its features and determine when to take more or less time to think. The GPT-5 model will be launched as a comprehensive AI system that will incorporate o3 along with other technologies.
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10. Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: 22
Informatica Inc. (NYSE:INFA) is a leader in enterprise AI-powered cloud data management. On February 14, BofA analyst Koji Ikeda downgraded the stock to “Neutral” from Buy with a price target of $20, down from $35. The rating follows Informatica’s “challenging” Q4 results and “soft” 2025 guidance. Even though the company’s adjusted earnings per share of $0.41 surpassed the consensus forecast of $0.38, revenue for the quarter came in at $428.3 million, considerably below the $456.86 million analysts were expecting.
The firm strongly believes that Informatica offers a proven enterprise-class solution that will benefit from artificial intelligence over the long term. However, challenges such as execution issues around renewals, revenue sensitivity, pushing professional services to partners, and foreign exchange are pushing the 2025 total revenue outlook 5% below the Street. The analyst told investors that they are “most concerned on the execution challenges”.
9. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 25
Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers. On February 13, the company announced that it had entered into a “carbon capture” partnership with equipment manufacturer Chart Industries. The partnership aims to generate near zero-carbon power using natural gas and fuel cells.
The companies noted that they intend to offer easily deployable power solutions such that they meet emission targets for customers such as data centers without compromising reliability or emission goals. Under the partnership, Chart Industries will use its carbon capture technology to process Bloom’s high-purity carbon dioxide (CO2) exhaust stream into outputs. This process is not only cost-effective but also effective in capturing high-purity CO2 for industrial applications or secure storage. Bloom’s fuel cell technology produces CO2 rich stream with a higher concentration of gas, making the process simple and cost-effective.
“Our partnership with Chart aims to demonstrate that cost-effective, onsite baseload power from natural gas with carbon capture is feasible at scale. Bloom fuel cells generate electricity without combustion, producing a concentrated CO₂ stream that lowers extraction costs, making carbon capture more affordable and efficient. For energy-intensive industries like data centers and large manufacturers, this will provide a path to reliable, scalable power while significantly reducing carbon emissions. I am excited about the opportunities this partnership can unlock and the positive impact for our planet.”
-KR Sridhar, Founder, Chairman, and CEO at Bloom Energy.
