xAI Cofounder Igor Babuschkin Seeks $1 Billion for New AI Startup River AI at $5 Billion Valuation
Summary
xAI cofounder Igor Babuschkin is seeking up to $1 billion for his new AI startup River AI at a $5 billion valuation, with General Catalyst in talks to lead the round and Babuschkin personally committing $100 million to the venture.
Key Points
- xAI cofounder Igor Babuschkin is in talks to raise up to $1 billion for a newly incorporated AI research startup called River AI, targeting a valuation of up to $5 billion.
- VC firm General Catalyst is in talks to lead the funding round, while Babuschkin himself is committing up to $100 million of his own capital to the venture.
- River AI, incorporated in Nevada on April 20, 2026, is emerging as part of a growing wave of researcher-led 'neolabs,' intensifying competition for top AI talent and large-scale compute resources.