According to reports, Elon Musk’s artificial intelligence company, xAI, is engaged in discussions to secure a substantial investment of $10 billion, which would result in a valuation of $75 billion for the company.

As reported by Bloomberg on Friday, xAI is presently reaching out to its existing investors, including prominent firms such as Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners, regarding this potential funding round. If successful, this investment would bring the total amount raised by xAI to $22.4 billion, as per data from Crunchbase. It is worth noting that the discussions are ongoing, and the terms of the funding round may be subject to change.

This potential influx of new capital comes at a time when xAI is reportedly considering a significant purchase of over $5 billion worth of servers from Dell, equipped with Nvidia chips, to support the development of its artificial intelligence technologies, including the Grok models. The Grok technology is currently being utilized to power various features on Elon Musk’s X social network, such as summaries of trending discussions.

Furthermore, Elon Musk announced during a livestreamed appearance at a technology conference in Dubai this week that the next major iteration of Grok, known as Grok 3, is scheduled for release in the upcoming weeks. According to Musk, Grok 3 is currently in its final stages and is outperforming all other chatbots.