A16Z in Talks to Lead 4-Month Old AI Firm’s $200 Million Round

Black Forest Labs, the German artificial intelligence startup that helps Elon Musk’s Grok produce images, is in talks to raise as much as $200 million from investors including Andreessen Horowitz less than four months after it launched.

The potential financing, led by Andreessen Horowitz, would give the startup a valuation of more than $1 billion, according to people familiar with the plans, who asked not to be identified discussing private information. No final decisions have been made and the amount of funding could still change, they said.

A round this size shows remarkable growth for the company, ...