Elon Musk's xAI is preparing to raise more money from investors in a deal that could value the artificial-intelligence company as high as $200 billion, the Financial Times reported on Friday, citing people close to the talks.

Elon Musk-led xAI, the maker of artificial intelligence chatbot Grok, is on its way to raise more money from investors, two reports said on Friday.According to the reports by the Financial Times and Blomberg,

According to the Financial Times, xAI plans to spend $18 billion on expanding its compute infrastructure. The company trains its models using a supercomputer called Colossus that is located in Memphis. Earlier this year, Musk stated that xAI plans to increase the number of graphics cards in the system from 200,000 to 1 million.

Elon Musk denies xAI's fundraising, but the potential $200 billion valuation shows rapid growth and ambition in AI.

Elon Musk unveiled the newest edition of xAI's flagship AI model, Grok, late Wednesday night in a livestream video that touted Grok 4's prowess at topping benchmark scores. Why it matters: xAI is in an accelerating race with OpenAI,

As Grok fired off replies on X praising Hitler, the chatbot's parent company also recently got permission to emit 97 tons of carbon monoxide per year to keep it running.

XAI — the result of a merger of X, formerly Twitter, with Musk’s AI startup xAI — would see its valuation climb in the latest deal, and cement its place as one of the world’s most valuable private companies if it reaches the US$200 billion valuation.

Some X users suddenly became the subject of violent ideations by xAI’s flagship chatbot.

Elon Musk's plans to ship an overseas power plant to Memphis for an xAI supercomputer raise both interest and environmental concerns.

Thanking Elon Musk, Ruddarraju said reporting to the billionaire and getting direct teachings from him was the best part of his stint at xAI.