Elon Musk’s AI venture, xAI, is reportedly gearing up for a significant new funding round that could value the company between $170 billion and $200 billion, according to the Financial Times . This aim represents nearly tenfold growth from a valuation of about $18 billion in mid-2024
Funding & Infrastructure Moves
In June, xAI raised $5 billion in debt and $5 billion in strategic equity, as reported by Morgan Stanley . The funds are earmarked for expanding AI infrastructure—including $18 billion in new data center investments—and scaling the Grok model’s capabilities
Musk Pushes Back, Says No Active Fundraise
Despite reports of the $200 billion fundraising target, Musk tweeted on X that “xAI is not seeking funding right now. We have plenty of capital.” The Financial Times also noted the talks are still in early stages and could shift
Strategic Context
- Saudi Arabia’s PIF is expected to play a key role, via Kingdom Holdings’ $800 million stake in xAI
- The deal follows xAI’s March acquisition of X (formerly Twitter), which valued xAI at $80 billion and X at $33 billion
- With projected annual earnings north of $13 billion by 2029 and $1 billion revenue expected this year, xAI is positioning itself behind only OpenAI—valued around $300 billion The Economic Times
What’s Next
- Finalizing details: Preliminary discussions for a potentially massive raise are still ongoing.
- Investor clarity awaited: With ample internal capital, xAI may delay the raise unless terms align strategically.
- Mirror openAI dynamic: As OpenAI eyes a $300 billion value, xAI’s $200 billion target signals intensifying valuation competition
