(Reuters) -Elon Musk's xAI has raised $10 billion, bringing the AI firm's post-money valuation to $200 billion, CNBC reported on Friday citing sources.
xAI did not immediately respond to a Reuters request for comment.
Investor enthusiasm towards AI startups has remained strong despite doubts over the tech industry's spending.
xAI has been looking to increase its footprint in the artificial intelligence industry by expanding its capacity of data centers to train AI models.
The $200 billion valuation would
be an over twofold jump from the $75 billion in July, according to data from Pitchbook.
It would also make xAI among the most valuable companies in the world behind OpenAI, China's Bytedance and Musk's SpaceX.
AI company Anthropic said it raised $13 billion at a post-money valuation of $183 billion earlier this month, while ByteDance is set to launch a new employee share buyback that will value the Chinese technology giant at more than $330 billion.
Morgan Stanley had said in late June xAI had completed a $5 billion debt raise alongside a separate $5 billion strategic equity investment, as the startup looked to expand its AI infrastructure through data centers amid intense competition.
The AI startup acquired X, Musk's social media business formerly known as Twitter, in March.
Musk had launched xAI in July 2023 as an alternative to OpenAI's ChatGPT.
(Reporting by Juby Babu in Mexico City; Editing by Shailesh Kuber and Krishna Chandra Eluri)
