Elon Musk’s AI startup xAI (X.AI) is reportedly in advanced talks to raise about $15 billion of new equity funding at a potential valuation around $23 billion, according to a Wall Street Journal report on Tuesday that cites people familiar with the matter.
Musk’s wealth manager, Jared Birchall, outlined the terms of fundraising to investors, though it is not clear whether this figure is pre- or post-money, the report added.
If completed on those terms, the deal would more than double the firm’s previously disclosed valuation of roughly $113 billion following its merger with Musk’s social platform X earlier this year.
The money will likely aid its expansion of AI infrastructure; xAI (X.AI) is constructing a huge data center complex with a supercomputer called Colossus in Memphis, Tennessee. Earlier this year, the business bought a one-million-square-foot property in the city.
Previously in July, the company raised $10 billion in debt and equity, including $2 billion from Musk’s SpaceX, to partially finance the project.
Recently, xAI (X.AI) released the latest version of its chatbot, Grok 4.1, and Musk said users should “notice a significant increase in speed and quality” over its prior versions. Grok competes against OpenAI’s (OPEN) ChatGPT, Google (GOOG) Gemini and Microsoft (MSFT) Copilot.