Elon Musk's AI company xAI in talks for new funding round, valuation could reach $120 billion

Elon Musk's AI startup xAI is in talks for a new round of financing, with its valuation potentially rising to $120 billion, a significant increase from $80 billion in March. Investors are discussing a financing amount of approximately $20 billion.

Previously, Musk sold the social platform X to xAI in an all-stock transaction, deeply integrating their businesses. xAI's chatbot Grok is trained on X platform user data and contributes part of its revenue to X. This round of financing follows OpenAI's announcement of completing a financing round with a $300 billion valuation.