Musk’s xAI Nears $15B Funding at $230B Valuation Amid AI Arms Race
Elon Musk's xAI is finalizing a $15 billion funding round that WOULD value the AI startup at $230 billion, according to Wall Street Journal sources. The deal represents one of the largest private capital raises in tech history, nearly doubling xAI's valuation since its March acquisition of X.
Jared Birchall, Musk's wealth manager, reportedly disclosed financing terms to investors, though key details remain unclear. The funding comes as xAI's Grok chatbot development burns through cash reserves - a common pattern among AI firms building infrastructure for what Musk predicts will be trillion-dollar AI markets.
At a recent Tesla shareholder meeting, Musk floated the idea of Tesla investing in xAI, generating mixed reactions. The proposed valuation eclipses OpenAI's $86 billion February valuation, signaling intensifying competition in generative AI.
