xAI Eyes Staggering $200B Valuation in Bold New Funding Push

Elon's AI moonshot loads up on rocket fuel—investors scramble for a seat.

The price of silicon dreams

xAI isn't just courting investors—it's demanding a $200 billion marriage dowry. That's more than most sovereign wealth funds. The audacity smells like dot-com era hubris with a Web3 twist.

Valuation alchemy at work

No revenue? No problem. The funding round redefines 'pre-revenue' as 'pre-reality'—yet Wall Street laps it up like dehydrated dogs at a blockchain conference water cooler.

One banker muttered 'this makes crypto ICOs look conservative' before wiring his firm's money. The AI gold rush waits for no fundamentals.

Saudi Arabia’s sovereign wealth fund, PIF, will play a large role in the deal

If xAI is able to lock in a deal, it WOULD cement a rapid rise in its valuation from the $18 billion set in its “Series B” fundraising in May 2024.

According to three people familiar with the process, the new fundraising would target a valuation of between $170 billion and $200 billion. However, they warned that things are still in the preliminary stages, with the details subject to change.

Two of the sources also alleged that Saudi Arabia’s sovereign wealth fund, PIF, will potentially play a large role in the deal. The PIF is known to have an indirect stake in xAI via  Kingdom Holdings Company, which has invested $800 million in xAI.

When xAI acquired X in March for $45 billion, the combined company was valued at $113 billion, a value that would grow to about $245 billion if the latest xAI fundraising goes through.

The news of his plans to raise more money for xAI has directed interest towards it, but it is not the only Musk venture that has surged in value recently. SpaceX has as well.

Reports claim the rocket and satellite group is getting ready to sell about $1 billion of its shares in a deal that would push its valuation to $400 billion. These developments are coming at a critical time for Musk after his public spat with TRUMP last month.

Musk gets good news after public falling out with Trump

All of Musk’s companies initially profited from his LINK to US President Donald Trump following the November election, which some argue Trump may have lost without Musk’s support. The financial aspect of Musk’s support amounted to more than $250 million for Trump’s campaign.

The very public fight triggered concern among investors who expected blowback on some of his businesses. However, the current valuation of his private companies suggests investors have gotten past their initial shock and fears and are now looking past the risks of Trump targeting Musk’s empire.

While their spat has cooled off, it is clear they are no longer on the same camp, with Musk even going as far as floating the launch of a third party in America to end what he sees as the tyranny of the democrats and republicans.

Update on where has @grok been & what happened on July 8th.

First off, we deeply apologize for the horrific behavior that many experienced.

Our intent for @grok is to provide helpful and truthful responses to users. After careful investigation, we discovered the root cause…

— Grok (@grok) July 12, 2025

Before talk of the upcoming fundraise took center stage, xAI’s Grok made headlines for praising Adolf Hitler and sharing antisemitic rhetoric on X.

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