Elon Musk’s xAI could soon be worth more than $200 billion
Elon Musk’s artificial intelligence company xAI is reportedly nearing a fundraising deal that would more than double its valuation to $230 billion.
The company that makes the Grok AI chatbot is in advanced talks to raise $15 billion in new equity capital. The Wall Street Journal reported. The new valuation would represent more than double the $113 billion figure announced when xAI acquired Musk’s social media platform X in March.
An increase of this magnitude would mark another important step in the AI funding race that has taken the financial world by storm this year. Rivals, including OpenAI, have raised large sums to build new infrastructure and develop chatbots. OpenAI completed a $6.6 billion stock sale in October, valuing it at $500 billion.
Also this week, Anthropic received an investment of $5 billion from Microsoft and $10 billion from Nvidia, increasing its value to approximately $350 billion.
This trend has raised concerns that valuations of technology companies are overinflated; Leaders including Google CEO Sundar Pichai are drawing comparisons to the dot-com bubble that burst at the turn of the century.
Musk also suggested that Tesla, which he leads, invest in its own artificial intelligence company. But at Tesla’s last shareholder meeting, shareholders weren’t so sure. A proxy vote on the issue did not yield enough votes in favor of such a measure for Tesla to inject cash into xAI.
Grok has received widespread backlash for producing fake content. anti-Semitic statements and other hate speech. It recently launched a website called Grokipedia, which is expected to rival Wikipedia.
Previously, xAI raised $5 billion in equity plus $5 billion in debt in June to build a data center in Tennessee. Musk’s SpaceX reportedly contributed $2 billion to this round.
Terms of the final fundraising were announced to investors on Tuesday, The Wall Street Journal reported. Musk posted last week in response to a similar CNBC report about xAI’s fundraising, calling X “wrong.”
Separately, Musk had dinner with President Donald Trump at the White House on Tuesday as part of a visit by Saudi Crown Prince Mohammed bin Salman. His appearance sparked speculation that the bitter fight between Musk and Trump may be resolving.
xAI did not immediately respond to a request for comment.
