Igor Babuschkin, a co-founder of Elon Musk's xAI, is in discussions to raise up to $1 billion for a new research startup named River AI.

Venture capital firm General Catalyst is reportedly in talks to lead the financing round.

The new venture targets a valuation of as much as $5 billion.

Babuschkin expects to personally invest up to $100 million into the company.

River AI was incorporated in Nevada in April 2026.

The startup follows the neolab model, prioritizing long-term research over immediate product development.