Elon Musk's xAI Prepares for Funding Round to Reach $200B Valuation

Elon Musk's xAI is reportedly preparing to hold another funding round to reach a valuation of over $200B. However, Musk has denied the report, stating that it is false. The funding round would be xAI's second since it was founded in 2022.

Elon Musk has dismissed reports that his artificial intelligence venture, xAI, is planning another funding round. The rumors suggested that xAI is seeking additional capital to reach a valuation of up to $200 billion [1]. Musk, however, has stated that the company is not currently looking for funding, stating, "xAI is not seeking funding right now. We have plenty of capital" [1].

The reports, which surfaced in late June, indicated that Saudi Arabia’s Public Investment Fund (PIF) might play a crucial role in this deal. PIF already has an indirect stake in xAI through its investment in Kingdom Holdings Company, which has committed $800 million to the firm [1].

In late June, Morgan Stanley disclosed that xAI had completed a $5 billion debt raise and a separate $5 billion strategic equity investment. This move is part of the startup’s strategy to enhance its AI infrastructure through data centers amid increasing competition [1].

The potential valuation of xAI at up to $200 billion underscores the company’s rapid growth and ambition in the AI sector. Recently, xAI launched Grok 4, touted as the world’s most powerful AI model, surpassing competitors like OpenAI’s ChatGPT and Google’s Gemini [1]. Musk announced that Grok 4 will soon be integrated into Tesla Inc. (TSLA) vehicles, further expanding its applications [1].

Musk's xAI had recently hired Katie Miller, wife of President Donald Trump’s Deputy Chief of Staff Stephen Miller, as a communications manager [1].

References:
[1] https://www.benzinga.com/markets/tech/25/07/46380521/elon-musk-rejects-reports-that-xai-is-looking-to-raise-additional-funds-at-200-billion-valuation-we-have-plenty-of-capital