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.
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.
