Elon Musk's xAI in talks to raise $10 billion at $75 billion valuation: Report

Elon Musk's xAI is discussing to raise $10 billion that could value the artificial intelligence startup at about $75 billion, Bloomberg News reported on Friday, citing a person familiar with the matter.

Existing investors, including Sequoia Capital, Andreessen Horowitz and Valor Equity Partners are in talks to participate in the deal, the report said.

xAI, Valor Equity Partners, Sequoia Capital and Andreessen Horowitz did not immediately respond to Reuters' requests for comment.

The billionaire's startup is looking to increase its footprint in the AI industry by expanding its capacity of data centers.

Musk, who launched xAI in 2023, has sued OpenAI to block its conversion to a public benefit corporation. Earlier this week, a consortium led by the world's richest person made an offer of $97.4 billion to buy the nonprofit that controls OpenAI.

The AI startup raised $6 billion in series B funding announced last year, reaching a post-money valuation of $24 billion.