Elon Musk's artificial intelligence venture, xAI, has raised $6 billion in equity financing as it intensifies efforts to compete with industry leaders in the AI sector, according to a recent report by Reuters.

The funding is expected to support xAI's ambitious expansion plans, including scaling its supercomputer facility in Memphis, Tennessee. The company aims to house over one million graphics processing units (GPUs), as per the report.

According to CNBC, the funding round positions xAI at a post-raise valuation exceeding $50 billion. By comparison, OpenAI closed a $6.6 billion funding round in October, valuing the company at $157 billion.

The financing of xAI comes amid a legal battle between Elon Musk and OpenAI, the maker of ChatGPT. Last month, Musk expanded his lawsuit against OpenAI, accusing the firm of illegally monopolising the generative AI market to suppress competition.