Elon Musk's xAI Reportedly Seeking $10 Billion in Funding

xAI Pursues $10 Billion Funding Round

Reports indicate that xAI, the artificial intelligence company founded by Elon Musk, is currently exploring a substantial funding round. Discussions are underway to secure $10 billion in investment.

This potential investment would establish a valuation for xAI at $75 billion. The information was initially reported by Bloomberg on Friday.

Investor Interest and Current Funding

xAI is reportedly approaching its current investors to lead this new round. These include prominent venture capital firms such as Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners.

If successful, this funding would increase xAI’s total capital raised to $22.4 billion, as tracked by Crunchbase. It's important to note that the details of this fundraising are still being negotiated and are subject to change.

Investment in Infrastructure

The pursuit of new capital coincides with reports that xAI is considering a significant investment in hardware. The company is allegedly evaluating a purchase of over $5 billion in servers from Dell.

This server infrastructure is intended to bolster the development of xAI’s AI technologies, notably the Grok models. Grok is increasingly integrated into features on Elon Musk’s X social media platform.

Grok 3 Release Imminent

Grok currently provides functionalities like summarizing popular conversations on X. The next iteration, Grok 3, is anticipated to launch within the coming weeks.

This timeline was announced by Elon Musk during a live-streamed presentation at a technology conference held in Dubai this week. The release of Grok 3 is expected to further enhance the AI capabilities available to X users.