The startup is leaning on Musk’s business empire to play catch-up in the AI race.

XAI Holdings, Elon Musk’s artificial intelligence and social media company, is in the early stages of a funding round that could value the business at $200 billion, according to a report in the Financial Times.

Elon Musk’s xAI is preparing to raise more money from investors in a deal that could value the artificial intelligence company as high as $200bn — 10 times its value early last year, according to people close to the talks.