Elon Musk’s artificial intelligence venture, xAI, is reportedly gearing up for a new funding round that could value the company between $170 billion and $200 billion, according to the Financial Times, citing sources familiar with the matter.

The Financial Times reported on Friday that Saudi Arabia’s Public Investment Fund (PIF) is expected to be a major contributor to the deal. PIF already has an indirect stake in xAI through its investment in Kingdom Holdings Company, which holds an $800 million position in the AI firm.

The discussions are still in early stages, and terms may shift, the report noted.

In response to the article, Musk took to X, stating, “xAI is not actively seeking funds at the moment. We have sufficient capital.”

A request for comment sent to PIF by Reuters went unanswered.

In late June, Morgan Stanley disclosed that xAI had secured $5 billion in debt financing and an additional $5 billion in strategic equity investment to bolster its AI infrastructure, particularly for expanding data centers in a highly competitive market.

xAI’s acquisition of X, Musk’s social media platform formerly known as Twitter, in March valued xAI at $80 billion and X at $33 billion.

Founded in July 2023 as a rival to OpenAI’s ChatGPT, xAI is positioning itself as a key player in the AI space. For comparison, OpenAI announced in March its plans to raise up to $40 billion at a $300 billion valuation.

According to Bloomberg News, Morgan Stanley projects xAI to achieve over $13 billion in annual earnings by 2029. The company anticipates $1 billion in gross revenue by the end of 2025 and plans to invest $18 billion in data center infrastructure to fuel its growth.