Elon Musk's xAI is preparing to raise more money from investors in a deal that could value the artificial-intelligence company between $170 billion and $200 billion, the Financial Times reported on Friday,

AI, Elon Musk’s AI company, is reportedly getting ready to raise more money from investors. If it succeeds, it could push its value as high as $200 billion.

Elon Musk's AI venture, xAI, has lost one of its top engineering leaders to rival AI heavyweight OpenAI. Uday Ruddarraju, who played a pivotal role in building the core infrastructure of Musk's xAI, confirmed his exit recently.

Elon Musk's xAI has apologized for Grok AI chatbot's extremist responses on July 8. A code update, intended to improve Grok's helpfulness, inadvertent

According to the Financial Times, xAI plans to spend $18 billion on expanding its compute infrastructure. The company trains its models using a supercomputer called Colossus that is located in Memphis. Earlier this year, Musk stated that xAI plans to increase the number of graphics cards in the system from 200,000 to 1 million.

Elon Musk's plans to ship an overseas power plant to Memphis for an xAI supercomputer raise both interest and environmental concerns.

This is the smartest AI in the world,” Musk said. He did not mention the chatbot’s viral posts praising Hitler and calling itself “MechaHitler.”

Elon Musk's xAI said Grok's behavior was due to an update that caused it to prioritize engagement, even if posts contained "controversial opinions."