Sources familiar with the matter revealed that the startup aims to raise several billion dollars, which would elevate its market worth significantly beyond its previous valuation.

The funding talks, still in early stages, could see terms shifting as discussions progress, leaving the possibility that negotiations could fall through. Musk has not publicly commented on the potential funding round, and further details remain under wraps.

Launched with notable backing, xAI previously raised $6 billion in Series B funding in May, which gave the company a post-money valuation of $24 billion.

The round included high-profile venture capital firms like Andreessen Horowitz and Sequoia Capital, both of which have shown sustained interest in the AI sector’s explosive growth.

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