XAI Seeks $10B Funding Round Valuing Company at $75B

Elon Musk's artificial intelligence startup, xAI, is reportedly in discussions to raise $10 billion, which would elevate its valuation to $75 billion. The fundraising efforts involve existing investors such as Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners, and follow a previous $6 billion Series C round that valued xAI at $51 billion. This new capital injection is said to support the company's ambitions, including a potential acquisition of Microsoft-backed OpenAI and a deal with Dell for $5 billion worth of AI servers. Notably, xAI's Grok chatbot is set to receive an upgrade with the upcoming Grok 3 release. Despite ongoing talks, the terms of the funding round remain fluid and have yet to be finalized. The surge in investment interest underlines the tech industry's confidence in Musk's vision for AI and the company's rapid growth trajectory.