Weeks after its last funding round, xAI Holdings Corp. is reportedly in talks to lift recent capital at a valuation of $170 billion to $200 billion.
The Financial Times today cited sources as saying that Saudi Arabia’s PIF sovereign wealth fund is predicted to play a “large role” within the investment. It’s unclear who’re the opposite investors within the round or how much xAI is searching for to lift.
Earlier this month, the Elon Musk-backed artificial intelligence company raised a $5 billion funding round and the identical amount in debt. It previously closed a $6 billion investment in November that valued it at $50 billion.
That xAI’s valuation is now reportedly poised to succeed in as much as $200 billion may be an indication of investor optimism about its technology. On Thursday, the corporate introduced a brand new flagship large language model called Grok 4. The algorithm set records across several artificial intelligence benchmarks known for his or her difficulty.
In a blog post accompanying the launch, xAI engineers detailed that the corporate enhanced its compute infrastructure while constructing Grok 4. The AI developer claims that the efficiency of its training workflows has increased by an element of six in consequence. The upgrade could have boosted investor confidence in xAI’s ability to compete with rivals akin to OpenAI.
In keeping with the Financial Times, xAI plans to spend $18 billion on expanding its compute infrastructure. The corporate trains its models using a supercomputer called Colossus that’s positioned in Memphis. Earlier this yr, Musk stated that xAI plans to extend the variety of graphics cards within the system from 200,000 to 1 million.
The corporate sells access to its Grok LLM series via an application programming interface and consumer-focused subscriptions. Last month, Bloomberg reported that xAI expects those offerings to generate $500 million in revenue this yr. The corporate estimates that its annual sales will jump to $19 billion by 2029.
A method xAI plans to take care of its revenue growth is by launching recent products. Through the X live stream through which Grok 4 was announced this week, Musk said that the corporate is working on versions of the model optimized for video generation and coding tasks.
The corporate will likely face tough competition within the coding automation market. Shortly after reports of xAI’s fundraising push emerged today, programming assistant developer Windsurf Inc. announced that its two co-founders and a number of other engineers will join Google LLC. The Alphabet Inc. may also license technology from the corporate, which recently received a $3 billion takeover offer from OpenAI.
Image: xAI
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