(Reuters) -Elon Musk’s xAI is discussing to raise $10 billion that could value the artificial intelligence startup at about $75 billion, Bloomberg News reported on Friday, citing a person familiar with the matter.

Existing investors, including Sequoia Capital, Andreessen Horowitz and Valor Equity Partners are in talks to participate in the transaction, the report said.

XAI, Valor Equity Partners, Sequoia Capital and Andreessen Horowitz did not immediately respond to Reuters’ requests for comment.

The billionaire’s startup recently raised $6 billion from investors at a valuation of $40 billion, sources have told Reuters.

XAI is looking to increase its footprint in the AI industry by expanding its capacity of data centers to train AI models.

Musk said on Thursday ChatGPT challenger, Grok 3, is in the final stages of development and would be released in about a week or two.

“Grok 3 has very powerful reasoning capabilities, so in the tests that we’ve done thus far, Grok 3 is outperforming anything that’s been released, that we’re aware of, so that’s a good sign,” he said in a video call addressing the World Governments Summit in Dubai.

Musk, who launched xAI in 2023, has sued ChatGPT-maker OpenAI to block its conversion to a public benefit corporation. Earlier this week, a consortium led by the world’s richest person made an offer of $97.4 billion to buy the nonprofit that controls OpenAI.

Separately, Dell is nearing a deal to sell more than $5 billion in AI servers to xAI, Bloomberg News reported on Friday, adding that the servers would contain Nvidia’s GB200 chips to be delivered this year.

(Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)