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Investing.com-- Elon Musk’s artificial intelligence startup xAI is in advanced talks to raise $15 billion in new equity at a $230 billion valuation, the Wall Street Journal reported on Tuesday, citing people familiar with the plans.
The new valuation would represent more than double the $113 billion valuation that xAI had disclosed earlier this year, after merging with social media platform X in March. The terms of the fundraise were disclosed to investors by Musk’s wealth manager, Jared Birchall.
CNBC had last week reported the $15 billion raise, which Musk responded to with “false” in a post on X.
xAI, like most other major AI startups, is burning vast amounts of cash as it seeks to scale up AI infrastructure and improve its models. The company had earlier this week released a new version of its flagship AI chatbot, Grok.
xAI was seen raising capital earlier this year to help complete the buildout of its Colossus data center in Memphis, Tennessee. SpaceX, another of Musk’s companies, had invested $2 billion in the AI startup then.
Musk, who is the CEO of Tesla Inc (NASDAQ:TSLA), has also raised the possibility of the electric vehicle maker investing in xAI, although Tesla shareholders were not particularly enthused by the idea.