Elon Musk‘s artificial-intelligence startup, xAI, is reportedly in advanced talks to raise $15 billion in fresh funding, bringing the company’s valuation to an eye-popping $230 billion, according to the Wall Street Journal.
The fundraising details were shared with investors by Musk’s wealth manager, Jared Birchall, on Tuesday night. It remains unclear whether the $230 billion figure is pre- or post-money.
Reuters could not independently verify the report, and Birchall was not immediately reachable for comment. xAI’s automated response to inquiries simply read, “Legacy Media Lies.”
If confirmed, the new valuation would more than double xAI’s $113 billion value after merging with Musk’s social-media platform X in March, EconomicTimes reported.
Last week, Musk dismissed a CNBC report claiming a $15 billion Series E round at a $200 billion valuation, calling it “false.”
Since its launch in July 2023, xAI has been working to close the gap with competitors like OpenAI’s ChatGPT and Anthropic’s Claude.
The company has been rapidly expanding its data-center operations to support more advanced AI models. Among its major projects is the planned Colossus supercomputer in Memphis, Tennessee, which is expected to power the startup’s future AI research.
Tesla Shareholders Approve Investment in Musk’s xAI
Musk has also suggested that Tesla could financially back xAI. Tesla shareholders recently approved an investment in the startup, although a significant number abstained from voting.
According to Reuters, Investor interest in AI remains high, despite warnings of a potential bubble caused by soaring valuations and aggressive spending.
Analysts note that xAI’s rapid growth reflects both the excitement around AI and Musk’s influence in driving attention to the sector.
xAI’s valuation leap highlights the intense competition in artificial intelligence, as companies race to develop more powerful models and secure large investments.
Musk’s high-profile leadership has brought extra attention to the startup, making it one of the most closely watched AI ventures today.
Experts believe that the planned $15 billion funding round could help xAI scale operations even faster and solidify its position as a major player in AI.
Originally published on vcpost.com
