Elon Musk xAI nears $75 billion valuation with new funding talks
xAI pursues $10 billion investment
Elon Musk’s artificial intelligence startup xAI is in discussions to raise $10 billion in fresh funding, a move that would boost the company’s valuation to $75 billion.
Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners—three of xAI’s key backers—are reportedly in talks to participate in the latest funding push. Neither xAI nor these investment firms have publicly commented on the matter, reports Investopedia.
Since its launch, xAI has aggressively secured capital, raising $6 billion in April 2023 and another $6 billion in December 2023. The latest $10 billion round would position the company among the highest-valued AI startups, rivaling industry giants such as OpenAI and Anthropic.
Strategic Partnerships and Competitive Moves
In addition to seeking fresh investment, xAI is reportedly finalizing a deal with Dell Technologies to purchase more than $5 billion worth of servers powered by Nvidia’s latest GB200 AI chips. The deal, if confirmed, would significantly expand xAI’s computing power, positioning it to scale its AI capabilities and compete with other major players in the artificial intelligence space.
The news of xAI’s fundraising efforts comes as Musk continues his broader push into the AI sector. Earlier this week, a group led by Musk offered $97.4 billion to acquire OpenAI, a bid that OpenAI’s board swiftly rejected, reaffirming that the company is not for sale.
With a potential $10 billion funding round and a major infrastructure deal in the works, xAI is solidifying its position as a major contender in the AI race. Investors and analysts will be closely watching how these moves shape the company’s growth trajectory, particularly as competition in the AI sector intensifies.
Recently, Elon Musk’s X, formerly known as Twitter, is set to partner with global payments leader Visa to introduce digital payments on the platform, marking a pivotal step toward Musk’s long-term vision of creating an all-encompassing “everything app.”
