Elon Musk’s artificial intelligence venture xAI is reportedly working with Valor Equity Partners to raise as much as $12 billion to fund its rapid expansion, according to sources cited by the Wall Street Journal. The capital would support the acquisition of high-end Nvidia chips for a large-scale data center powering Grok, xAI’s conversational AI platform.
Valor, led by Antonio Gracias, a longtime Musk ally, is said to be engaging with lenders under terms that may include a three-year repayment window. xAI is currently training Grok on a supercluster with 230,000 GPUs and plans to scale to 550,000 more. Despite reports of a potential $200 billion valuation, Musk recently claimed xAI does not need additional funding.
