Elon Musk's xAI is seeking $10 billion in new funding at a valuation of $200 billion.

Elon Musk is pushing the AI startup xAI to raise 10 billion USD with a valuation of 200 billion USD, according to CNBC. The funding is expected to be primarily used to build a data center with a range of Nvidia and AMD GPUs, serving the next generation of AI.

Currently, xAI is building a large-scale AI computing cluster in Memphis (Tennessee) to have enough computational power to train advanced models. This information comes after the company just completed a funding round of 10 billion USD from debt and equity at a valuation of around 150 billion USD, just a few weeks earlier. Previously, in December, xAI had also raised 6 billion USD for AI development.

A massive fundraising wave is spreading throughout the industry: Anthropic just raised 13 billion USD with a valuation of 183 billion USD, while OpenAI reached a level of 500 billion USD through a secondary share sale.

However, xAI's Grok chatbot is still controversial due to many misleading responses and extreme statements, and it is considered inferior compared to Anthropic's Claude and OpenAI's GPT.

Earlier in March, Musk merged xAI with X (, the former social media platform Twitter), in a stock swap deal, valuing xAI at 80 billion USD and X at 33 billion USD. However, Musk stated that there is no intention to merge xAI into Tesla.