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 Friday, citing people close to the discussions.
Saudi Arabia's PIF sovereign wealth fund is expected to play a large role in the deal, according to the FT report.
PIF holds an indirect interest in xAI through its stake in Kingdom Holdings Company, which has an $800 million investment in the firm.
Morgan Stanley said in late June that xAI had completed a $5 billion debt raise alongside a separate $5 billion strategic equity investment, as the startup looks to expand its AI infrastructure through data centers amid intense competition.
xAI and PIF did not immediately respond to Reuters requests for comment.
The AI startup acquired X, Musk's social media business formerly known as Twitter, in March, valuing xAI at $80 billion and X at $33 billion.
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