Elon Musk's xAI is preparing to raise more money from investors in a deal that could value the artificial-intelligence company as high as $200 billion, the Financial Times reported on Friday, citing people close to the talks.

According to the Financial Times, xAI plans to spend $18 billion on expanding its compute infrastructure. The company trains its models using a supercomputer called Colossus that is located in Memphis. Earlier this year, Musk stated that xAI plans to increase the number of graphics cards in the system from 200,000 to 1 million.

Elon Musks AI startup xAI is reportedly exploring a new funding round that could value the company between $170 billion and $200 billion, according to the Financial Times. Sources familiar with the matter say Saudi

As Grok fired off replies on X praising Hitler, the chatbot's parent company also recently got permission to emit 97 tons of carbon monoxide per year to keep it running.

Elon Musk unveiled the newest edition of xAI's flagship AI model, Grok, late Wednesday night in a livestream video that touted Grok 4's prowess at topping benchmark scores. Why it matters: xAI is in an accelerating race with OpenAI,

Some X users suddenly became the subject of violent ideations by xAI’s flagship chatbot.

Elon Musk's plans to ship an overseas power plant to Memphis for an xAI supercomputer raise both interest and environmental concerns.

This news comes after Elon Musk's xAI claimed that its ultimate goal is to develop a "maximally truth-seeking AI." xAI hasn't commented on the issue, making it impossible to establish whether Grok 4's responses based on Elon Musk's opinions are by design or it could be an error that the company is currently working on to resolve.