Elon Musk’s xAI in Talks for $10 Billion Investment Round

Elon Musk’s startup xAI, known for developing the Grok chatbot, is in negotiations to raise $10 billion in funding.

The company’s valuation could reach $75 billion, Bloomberg reports, citing sources. Discussions involve existing investors, including Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners. However, the terms of the deal are not yet final and may change. In December 2024, following its latest funding round, xAI was valued at more than $40 billion.

Additionally, xAI is in talks with Dell to procure servers. Sources indicate that the two parties are in the advanced stagesof closing a $5 billion deal, with the equipment set to be delivered in 2025.

Musk’s company is also working on the Memphis Supercluster, an AI training hub located in Tennessee. Dell declined to comment on the matter, while xAI representatives have not responded to media inquiries.

Following news of the negotiations, Dell’s stock rose by 6% on February 14, 2025, reaching $116.88 per share, before closing at $114.38.