Elon Musk's xAI is raising $10 billion from investors in a round that values the artificial intelligence startup at $200 billion, sources with direct knowledge of the situation told CNBC's David Faber.

It's the latest example of skyrocketing valuations for companies developing foundational AI models. Earlier this month, Anthropic raised $13 billion at a $183 billion valuation. OpenAI, the largest company in the industry, held a secondary share sale that valued it at $500 billion.

The fundraising comes weeks after Musk raised $10 billion in debt and equity at what was believed to be a roughly $150 billion valuation, according to Faber. Last December, xAI raised $6 billion to fund its AI development.

Later on Friday, Musk called the report "fake news" in a post on X , and said "xAI

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