Elon Musk’s AI company, xAI, is reportedly seeking to raise around US$10 billion in a funding round that could value the company at US$75 billion. This information comes from a source familiar with the matter.

Existing investors such as Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners are in discussions to participate.

Terms for the financing have not yet been finalized and may change.

In 2024, xAI raised US$6 billion across two rounds and was last valued at US$51 billion, according to PitchBook data.

The company aims to compete with OpenAI, which Musk co-founded, with its key product is the chatbot Grok, which integrates with Musk’s social platform X.

Musk recently indicated that the upcoming Grok 3 chatbot is set for public release in the coming weeks.

xAI is also negotiating a server purchase deal with Dell Technologies worth over US$5 billion.

Recent xAI developments