Elon Musk’s AI company, xAI, is reportedly in discussions to secure $10 billion in a funding round that would value the company at $75 billion. According to Bloomberg’s report on Friday, xAI is in talks with current investors such as Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners for the round. This funding would increase xAI’s total raised capital to $22.4 billion, as per Crunchbase data. It was also mentioned that the discussions are still ongoing, and the terms of the fundraising round could potentially change.
This prospective capital inflow coincides with xAI’s consideration of purchasing over $5 billion worth of servers from Dell to enhance the development of its AI technologies, including the Grok models. Grok powers various features on Elon Musk’s X social network, such as summaries of trending discussions.
The upcoming major version of Grok, Grok 3, is expected to launch in the next few weeks. Musk announced this during a live-streamed appearance at a technology conference in Dubai, highlighting that Grok 3 is in the final stages and performing better than any existing chatbots.
