Elon Musk's artificial intelligence company, xAI, has initiated a significant $300 million share sale, valuing the company at an impressive $113 billion.

This secondary offering will allow employees to sell shares to new investors, reflecting strong investor interest and confidence in xAI's growth potential.

The share sale is part of xAI's broader strategy to raise capital for ongoing projects and expansion within the rapidly evolving AI sector.

The announcement has sparked optimism in the tech sector, positively impacting AI-themed cryptocurrencies such as Render Token (RNDR), Fetch.ai (FET), and SingularityNET (AGIX).

Following the news, RNDR's price increased by 5.2% to $10.85, while FET rose 4.7% to $2.15, indicating heightened trader interest in AI tokens.

The xAI news also contributed to a 3% rise in trading volume for crypto-related stocks like Coinbase Global, suggesting a flow of institutional capital into both crypto and tech equities.

On the same day, the Nasdaq Composite Index rose 0.8%, reflecting broader stock market optimism towards tech and innovation.

Market participants should brace for price volatility in AI-related cryptocurrencies, as significant investments in AI typically drive sentiment in the crypto market.

Bitcoin's price also showed positive movement, trading at $67,800 with a 1.5% gain, indicating a strong correlation between AI tokens and Bitcoin.

This financial maneuver underscores Musk's commitment to advancing AI technology through xAI, which aims to tackle the complexities of artificial intelligence.

The correlation between AI stock gains and crypto rallies suggests that optimism in the tech sector can drive both retail and institutional investment in crypto markets.

With this capital raise, xAI positions itself as one of the world's most valuable AI startups, intensifying competition with established players like OpenAI and Google.