Elon Musk’s xAI Seeks $10 Billion Funding, Valuation Could Reach $75 Billion

xAI Seeks New Round of Funding
According to Bloomberg on February 15, citing sources familiar with the matter, Elon Musk’s artificial intelligence company, xAI, is seeking around $10 billion in funding, and this round of financing is expected to push the company’s valuation to $75 billion. Existing investors, including Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners, are discussing their participation in the deal. The source noted that the terms of the financing have not yet been finalized and could be adjusted.

xAI's Rapid Fundraising History
xAI has been raising funds at an incredible speed. According to PitchBook data, the company’s most recent valuation was around $51 billion (approximately 370.5 billion RMB). The company announced the completion of a $6 billion Series C funding round in December last year and announced another round of $6 billion funding in May.

xAI's Competition with OpenAI
xAI is a competitor to OpenAI, and Elon Musk is one of the founders of OpenAI. He recently proposed acquiring the non-profit assets of OpenAI for $97.4 billion. xAI’s flagship product is a chatbot named Grok, which can be accessed via the social platform X. On Thursday, Musk stated that the upcoming Grok 3 chatbot has surpassed all previous AI models released to date, and the world will see this product “within a few weeks.”

Server Acquisition Plans
Moreover, xAI is in discussions with Dell Technologies to acquire servers worth over $5 billion. This plan will further strengthen xAI’s computing power and infrastructure, providing solid support for its future development.

Investors Supporting xAI
PitchBook’s data also reveals that several investors, including Nvidia, DFJ Growth, AMD Ventures, Petra Equity Partners, Transform Investment Group, and Flat Capital, have provided support for the company. The participation of these investors further underscores the enormous potential and appeal of xAI in the field of artificial intelligence.

Outlook
With the ongoing new funding round, xAI’s valuation is expected to reach $75 billion, which will provide the company with strong financial backing for further development in the AI field. Musk’s xAI is rapidly rising as a strong competitor to OpenAI. In the future, with the launch of Grok 3 chatbot and the server acquisition plan, xAI will show even stronger competitive and innovative capabilities in the field of AI.

Conclusion
Elon Musk’s xAI company is seeking $10 billion in funding, which is expected to bring the company’s valuation to $75 billion. With its rapid fundraising speed and strong technical strength, xAI has become a major competitor in the AI field. In the future, with new products and enhanced infrastructure, xAI will demonstrate even greater influence and market position globally.