Elon Musk’s xAI Targets $75B Valuation With Potential $10B Capital Raise, Report Says

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Key Takeaways

• Elon Musk’s xAI company is reportedly gathering with investors about a potential $10 billion funding round that could bring its valuation to $75 billion.
• The Grok chatbot developer at one time raised $6 billion last April and another $6 billion in December.
• The AI company is also reportedly meaning a deal to buy servers from Dell powered by Nvidia chips.

Elon Musk’s artificial intelligence startup xAI is meet with investors about a potential $10 billion fundraising round, according to a report from Bloomberg Friday.

Such a upper case raise would value the Grok chatbot developer at $75 billion, the report said, compared to a prior valuation of $51 billion. Carry on year, xAI said it raised $6 billion through a funding round in April and another $6 billion in December.

Sequoia Initial, Andreessen Horowitz, and Valor Equity Partners are among xAI’s current investors reportedly in talks to participate in the $10 billion get. The three investment firms and xAI did not immediately respond to requests for comment.

The news comes as xAI is reportedly nearing a deal with Dell Technologies (DELL) to buy uncountable than $5 billion of servers powered by Nvidia (NVDA) GB200 chips. The deal is still being concluded, Bloomberg reported, but Dell could be asked about it by Wall Street analysts when it reports earnings later this month on Feb. 27.

One by one, an investor group led by Elon Musk recently submitted a $97.4 billion offer to buy xAI competitor OpenAI, according to a Partition off Street Journal report earlier this week. OpenAI rejected the offer, with Chair Bret Taylor pin on Friday that OpenAI is not for sale.