Elon Musk's xAI is reportedly in advanced discussions to secure $15 billion in funding, potentially valuing the AI company at $230 billion. This represents a significant increase from its previous valuation of $113 billion after merging with X. The funds are expected to support xAI's AI infrastructure expansion, including a large data centre complex with a supercomputer named Colossus in Memphis, Tennessee.
The fundraising occurs amidst increasing competition in the AI sector, with xAI working to enhance its Grok chatbot to compete with OpenAI's ChatGPT and Google's Gemini. xAI previously raised $10 billion in debt and equity, including $2 billion from SpaceX, to support its projects.
The potential investment also comes amid legal battles with Apple and OpenAI. The continuous fundraising reflects the substantial capital required for AI startups to train models and build infrastructure.
