Musk’s xAI Targets $10B Mega-Round in Bold Funding Push
Elon's AI venture goes big—real big.
Funding Frenzy
xAI isn't just dipping toes—it's diving headfirst into the capital pool with a whopping $10 billion ask. That's not seed money; that's forest money.
Market Moves
While VCs scramble to write checks, skeptics whisper about another 'visionary' round that might just be funding more hype than hardware. Because in tech, sometimes the biggest innovation is the fundraising pitch itself.
Watch this space—if you can afford the ticket.
AI mega-rounds
The fundraising represents the latest surge in AI company valuations following similar mega-rounds across the sector. Anthropic raised $13 billion at a $183 billion valuation earlier this month, while OpenAI completed a secondary share sale valuing the company at $500 billion.
The funding pursuit occurs amid persistent issues with xAI’s Grok chatbot, which has generated controversy through problematic responses.
Incidents include the chatbot praising Adolf Hitler, attacking Jewish people, and providing unrelated comments about “white genocide” and South Africa in response to user queries.
According to the report, Grok also lags behind industry leaders Anthropic’s Claude and OpenAI’s GPT models in capabilities and user adoption.
Musk announced in March that xAI merged with X, his social media platform, through an all-stock transaction valuing xAI at $80 billion and X at $33 billion.
Tesla’s board recently requested investor approval for a new Musk compensation package potentially worth $975 billion.
However, Musk stated he opposes merging xAI with Tesla, maintaining separation between his automotive and AI ventures despite potential synergies.
The funding round highlights the AI industry’s capital-intensive nature as companies compete for talent, computational resources, and market position in the rapidly evolving artificial intelligence landscape.
