Elon Musk's AI company xAI is in talks with investors to raise new funding at a valuation of around $40 billion, according to The Wall Street Journal.
xAI hopes to bring in several billion dollars into the round, adding onto the $6 billion it raised in Series B in May. The rumored valuation would nearly double xAI's current post-money valuation of $24 billion.

Musk founded xAI last year. Shortly after that, the company – which recently relocated to OpenAI's former offices – created its first model, Grok, to run a variety of features on Musk's social media platform, X.

xAI now provides an enterprise API. And the company says it's training the next generation of Grok models on a gigantic cluster of 100,000 Nvidia GPUs.

Musk frequently claims that X's data gives xAI a big lead over competitors. This month, X updated its privacy policy to allow third parties, including xAI, to train models on X posts.