If xAI lands the funding, it would exponentially expand the company that Mr. Musk started in 2023. He initially launched xAI to compete with Sam Altman’s OpenAI, of which Mr. Musk was originally a part.

While xAI has grown significantly since its launch, OpenAI is still the clear leader in generative AI. This year, after transitioning to a for-profit model, OpenAI secured $6.6 billion in its first funding round, which could value the company at $157 billion.