Financial Times: Musk's xAI seeks valuation of up to $200 billion in next funding round

Financial Times: Musk's xAI seeks valuation of up to $200 billion in next funding round

Elon Musk's artificial intelligence startup, xAI, is planning to seek a valuation of up to $200 billion in its next funding round. This ambitious target comes as the company continues to expand its AI capabilities and infrastructure. xAI has recently launched Grok 4, its most advanced AI model to date, which is being offered through a premium subscription tier called SuperGrok Heavy, starting at $300 per month [1].

The launch of Grok 4 is significant as it outperforms competitors like OpenAI's ChatGPT, Google's Gemini, and Anthropic's Claude on AI reasoning benchmarks. This indicates a substantial advancement in AI reasoning abilities, although it operates at higher computational costs per task compared to competitors [2].

In addition to Grok 4, xAI is expanding its infrastructure. The company has recently received permits for natural gas turbine operations at its Memphis supercomputer facility and plans to deploy one million GPUs sourced primarily from Nvidia and AMD [2]. These moves suggest a robust investment in AI infrastructure to support the company's growth.

xAI's valuation has surged to $113 billion following its acquisition of Twitter's social media platform X. The company recently completed a $300 million share sale and is pursuing $20 billion in equity funding, with valuations potentially reaching $200 billion [2].

The company's expansion comes amidst Musk's focus on AI development, which is seen as a potential solution to Tesla's autonomous vehicle competition and mounting shareholder pressure regarding his time allocation across multiple companies. Musk's withdrawal from his role in the Department of Government Efficiency further underscores his dedication to xAI [2].

xAI's growth is also reflected in its recent strategic funding round, where Cobionix closed a $3-million USD round to put its collaborative medical robot on the market. This round was led by TitletownTech, a Wisconsin-based venture capital firm backed by Microsoft and the Green Bay Packers NFL team, with participation from Lions Investment, Dr. Paul McBeth, and other undisclosed investors [3].

The combination of advanced AI models, robust infrastructure, and strategic funding rounds positions xAI as a key player in the AI market. As the company continues to seek a valuation of up to $200 billion, investors and financial professionals will be closely watching its progress.

References:
[1] https://theaiinsider.tech/2025/07/11/ai-week-in-review-xai-launches-grok-4-perplexitys-new-browser-eu-announces-ai-code-of-practice-plus-funding-rounds-for-chai-ai-duplocoud-and-lovable/
[2] https://www.benzinga.com/markets/tech/25/07/46335602/elon-musk-s-xai-launches-grok-4-with-phd-level-ai-debuts-in-300-month-supergrok-tier
[3] https://medicalbuyer.co.in/cobionix-closes-usd-3m-strategic-funding-round/