A report from the Wall Street Journal (WSJ) indicates that venture capital firm Gigafund and Steve Jurvetson are among the backers who are considering investing in the round.
The WSJ report also said that another co-founder of a venture firm was interested but did not name this person.
This is in contrast to comments made by Musk in January when he said: “xAI is not raising capital and I have had no conversations with anyone in this regard.”
Last month, xAI launched its own chatbot called Grok which rivals ChatGPT. The chatbot is available to use by some users of X.
Early in March, it emerged that Musk had filed a lawsuit accusing OpenAI and its chief executive Sam Altman of a breach of contract.
The lawsuit said that rather than benefitting humanity, OpenAI was working on “proprietary technology to maximise the profits for literally the largest company in the world”.
The long-standing feud took a fresh turn when Musk wrote on X that OpenAI was “aggressively recruiting Tesla engineers with massive compensation offers and have unfortunately been successful in a few cases”.
