Elon Musk’s artificial intelligence startup X.AI Corp. is nearing a deal to raise $6 billion in a funding round that would value the company at $18 billion, according to a person familiar with the matter.

Sequoia’s backing, which was first reported by The Information, will come as a boost to Musk as he attempts to catch up with rival AI start-ups such as ChatGPT-creator OpenAI and Anthropic, as well as Big Tech companies including Meta and Google, which have built the most powerful leading large language models that underpin new AI tools.

Jared Birchall, who heads Musk's family office, was telling prospective investors that xAI was raising $3 billion at a $15 billion pre-money valuation. Sequoia Capital and Future Ventures, the venture fund co-founded by Musk’s longtime friend Steve Jurvetson,