Elon Musk's AI company xAI is in talks to raise new funding at a valuation of about $40 billion, according to the Wall Street Journal.
xAI hopes to raise billions of dollars in this round, on top of the $6 billion in Series B funding the company raised in May. The rumored valuation would be nearly double xAI's current post-money valuation of $24 billion.
Musk founded xAI last year. Shortly thereafter, the company, which recently moved into OpenAI's old offices, developed its first model, Grok, which powers various features of 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 claims that X's data gives xAI a huge advantage over its rivals. This month, X changed its privacy policy to allow third parties, including xAI, to train models on X's posts.