Musk-led xAI in talks to raise $10B at $75B valuation
What's the story
Elon Musk's artificial intelligence start-up, xAI, is said to be in talks to raise $10 billion in a funding round.
If the deal goes through, the company could be valued at a whopping $75 billion, Bloomberg News reported.
According to the report, existing investors including Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners are mulling over participating in the funding round.
Growth strategy
xAI's expansion plans in the AI industry
The main goal behind xAI's fundraising is to bolster its position in the cut-throat AI space. The company intends to do so by expanding its data center capacity. Musk, who founded xAI in 2023, recently sued OpenAI over its transformation into a for-profit corporation.
Past performance
Previous funding and valuation
In its last funding round, xAI managed to raise a whopping $6 billion in Series B funding. This brought the company's post-money valuation to around $24 billion.
The ongoing talks for more funding suggest a massive jump in the start-up's valuation, further emphasizing its meteoric rise in the artificial intelligence space.