Elon Musk’s artificial-intelligence company xAI is exploring a new fundraising that could value the business at as much as US$200 billion, the Financial Times reported, citing people familiar with the talks. The startup is said to be canvassing investors, with Saudi Arabia’s Public Investment Fund expected to feature prominently, although the exact amount of capital sought has not been determined. The prospective deal follows a string of financings completed in recent weeks. On 1 July, Morgan Stanley said xAI had secured US$10 billion—split evenly between debt and a strategic equity investment—to expand data-centre capacity for its Grok chatbot and other large-language-model projects. Bloomberg previously reported that xAI was also negotiating a separate US$4.3 billion equity raise on top of a US$5 billion debt package arranged earlier this year. The aggressive fundraising reflects the company’s cash needs. Bloomberg estimates xAI is burning through about US$1 billion a month and could spend roughly US$13 billion this year as it races to scale computing power and compete with OpenAI and other rivals. Investor materials cited by SiliconANGLE project revenue of about US$500 million in 2025, rising to US$19 billion by 2029. A valuation of up to US$200 billion would mark a tenfold increase from xAI’s Series B round in May 2024 and place the firm among the world’s most valuable privately held technology companies, underscoring continuing investor appetite for generative-AI platforms despite their heavy capital requirements.