xAI, Elon Musk’s AI company, is reportedly seeking a $10bn funding round, valuing the firm at approximately $75bn.

Existing investors such as Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners are in discussions to participate, reported Bloomberg, citing a source.

The terms of the funding round are not yet finalised and could change.

Representatives for xAI and Valor have not responded to requests for comment, while Sequoia and Andreessen Horowitz declined to comment, reported the media outlet.

The New York Post had earlier reported that the AI company could have a valuation of $75bn. The company has rapidly raised billions, securing $6bn in a Series C round in December 2024 after a $6bn round in May of the same year.

xAI, a competitor to OpenAI, which Musk co-founded, recently made an unsolicited $97.4bn offer to acquire the assets of the nonprofit that controls OpenAI.

xAI’s main product, Grok, a chatbot, is available through Musk’s social network X.

Musk recently claimed that the upcoming Grok 3 chatbot outperforms existing models and will be available in weeks.

Additionally, xAI is negotiating server purchases from Dell Technologies worth more than $5bn.

Meanwhile, as per another Bloomberg report, Dell is negotiating with xAI to supply servers with Nvidia GB200 semiconductors.

This deal could be worth more than $5bn, with delivery to be made in 2025, reported the media outlet, citing sources familiar with the deal.

The demand for AI computing has boosted high-powered server makers, including Dell, Super Micro Computer, and Hewlett Packard Enterprise.

xAI’s supercomputer project in Memphis utilises a mix of Dell and Super Micro servers.

In December 2024, Dell announced deploying tens of thousands of GPUs there, and aimed to secure a significant portion of the remaining build-out.