xAI cofounder Igor Babuschkin is in talks to raise up to $1 billion in initial financing for a new AI research startup called River AI, multiple sources familiar with the deal told Forbes. The startup aims to raise funding at a valuation of up to $5 billion, multiple sources said.

VC firm General Catalyst is in talks to lead the round, two of the sources added, noting the round is still ongoing and the deal size could change. Babuschkin is also putting up to $100 million of his own money into the company, these people said.

Babuschkin and General Catalyst did not respond to Forbes’ request for comment.

While it’s unclear exactly what River AI is planning to work on, it’s part of a growing wave of so-called “neolabs”— startups........

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