February 15, 2025 – According to sources cited by Bloomberg today, Elon Musk’s artificial intelligence venture, xAI, is in the process of seeking around 10billioninfunding,whichisexpectedtopropelthecompany′svaluationtoastaggering75 billion.
Existing investors, including Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners, are reportedly in discussions to participate in this latest funding round. However, the source cautioned that the specific terms of the financing are still being negotiated and could undergo changes.
xAI has been raising funds at an impressive pace. Data from PitchBook indicates that the company’s recent valuation stood at approximately 51billion.LastDecember,xAIannouncedthecompletionofa6 billion Series C funding round, followed by another $6 billion round in May.
Interestingly, xAI is a rival to OpenAI, where Musk himself is a co-founder. Recently, he made headlines by offering to acquire the assets of the nonprofit organization controlling OpenAI for $97.4 billion. xAI’s flagship product is a chatbot named Grok, accessible via the social platform X.
On Thursday local time, Musk teased the upcoming release of Grok 3, claiming that it has surpassed all other AI models released so far. He added that the world would witness this new product within “weeks.” Furthermore, xAI is also in talks with Dell Technologies for the acquisition of servers worth over $5 billion.
PitchBook’s data further reveals that several other investors, including NVIDIA, DFJ Growth, AMD Ventures, Petra Equity Partners, Transform Investment Group, and Flat Capital, have backed the company in its journey.
