Elon Musk’s xAI in advanced talks to raise $15 billion at $230 billion valuation
Elon Musk’s artificial intelligence startup xAI is in advanced discussions to raise $15 billion in new funding at a valuation of about $230 billion, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
According to the report, the fundraising terms were presented to investors by Musk’s wealth manager, Jared Birchall. The Journal said it remained unclear whether the $230 billion valuation figure was pre-money or post-money. xAI, in what appeared to be an automated message, replied “Legacy Media Lies,” News.Az reports, citing Reuters.
If finalized, the valuation would more than double the $113 billion figure disclosed when xAI merged with Musk’s social platform X in March. The company has been expanding its data-center operations and accelerating development of advanced AI models as it races to compete with OpenAI’s ChatGPT and Anthropic’s Claude.
Musk last week denied a CNBC report that claimed xAI was raising $15 billion in a Series E round valuing the firm at $200 billion, calling the information “false.” The Journal’s latest report comes as xAI continues major infrastructure investments, including property in Memphis, Tennessee, where it plans to build its Colossus supercomputer.
Musk has previously hinted at the possibility of using Tesla to support xAI, and Tesla shareholders approved an investment in the startup earlier this month, though a substantial portion abstained from the vote.
Investor demand for AI companies remains strong despite increasing warnings of a potential AI bubble, driven by skyrocketing valuations and aggressive expansion plans across the sector.
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