Elon Musk’s artificial intelligence company xAI is in discussions with investors for a new funding round of approximately $10 billion.

This round could raise the company’s valuation to around $75 billion. According to a source familiar with the matter, investment discussions are ongoing.

Existing investors such as Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners are in talks to participate in this funding round.

However, the financing terms are not yet finalized and may vary.

The New York Post had previously reported that xAI could reach a valuation of $75 billion.

VALUATION WAS AT $51 BILLION IN DECEMBER

xAI has been rapidly raising billions of dollars in funds lately.

According to PitchBook data, the company’s most recent valuation was at $51 billion. In December, the company announced the completion of a $6 billion Series C funding round. It had also secured $6 billion in funding back in May.

OFFERED $97.4 BILLION FOR OPENAI

The company operates as a competitor to OpenAI, of which Musk is a co-founder. Musk recently made an unexpected offer of $97.4 billion to acquire the assets of the non-profit organization that controls OpenAI. xAI’s main product, the Grok chatbot, is used through Musk’s social media platform X (formerly Twitter).

MUSK: GROK 3 PERFORMS BETTER THAN ITS COMPETITORS

Musk claimed that the Grok 3 chatbot, set to be released soon, performs better than other artificial intelligence models released to date. Musk mentioned that the model will be introduced to the public in a few weeks. It was also reported that xAI is in talks to acquire server assets worth over $5 billion from Dell Technologies.