Elon Musk’s AI company, xAI, is in talks to raise new funding at a valuation around $40 billion, according to The Wall Street Journal.
xAI hopes to raise several billion dollars in the round, adding to the $6 billion in Series B funding that the company raised in May. The rumored valuation would nearly double xAI’s current post-money valuation of $24 billion.
Musk formed xAI last year. Soon after, the company — which recently moved into OpenAI’s old offices — developed its first model, Grok, to power various features on Musk’s social network, X (formerly known as Twitter).
xAI now offers an enterprise API. And the company says it’s training the next generation of Grok models on a massive cluster of 100,000 Nvidia GPUs.
Musk often asserts that X’s data gives xAI a substantial leg up compared to rivals. This month, X changed its privacy policy to allow third parties, including xAI, to train models on X posts.