xAI Holdings Corp. is reportedly in talks to raise fresh capital with a valuation range of $170 billion to $200 billion, just weeks after its previous funding round concluded. According to the Financial Times, Saudi Arabia's Public Investment Fund (PIF) is expected to play a "significant role" in this upcoming investment. Specific details regarding other potential investors or the exact funding target remain undisclosed. Earlier this month, the AI firm backed by Elon Musk secured $5 billion in new equity financing along with $5 billion in debt support. This follows a $6 billion investment secured in November when the company's valuation stood at $50 billion. The current estimated valuation range of up to $200 billion suggests strong investor confidence in xAI's technological capabilities, particularly demonstrated by the recent launch of its flagship large language model Grok 4, which set records across several challenging AI benchmarks. In an associated blog post, xAI engineers revealed significant enhancements to their computational infrastructure during Grok 4's development. The AI team claims their training workflow efficiency improved sixfold through these upgrades, potentially strengthening investor confidence in the company's competitive position against rivals like OpenAI. The company plans to allocate $18 billion toward expanding its computational infrastructure, utilizing the Memphis-based supercomputer Colossus for model training. Earlier this year, Musk announced plans to increase GPU capacity from 200,000 to 1 million units within the system. xAI monetizes its Grok LLM series through API access and consumer subscriptions, with Bloomberg reporting anticipated annual revenue of $500 million this year and projecting a leap to $19 billion by 2029. To maintain revenue growth, xAI aims to develop specialized models for video generation and coding tasks. During a recent X broadcast announcing Grok 4, Musk highlighted these upcoming product innovations. However, competition intensifies in the coding automation market, as demonstrated by immediate industry reactions - shortly after xAI's funding announcement, programming assistant developer Windsurf Inc. announced key personnel would join Google, with Alphabet securing technology licenses while recently receiving a $3 billion acquisition offer from OpenAI.