xAI’s Funding Spree Amidst AI Valuation Frenzy

Elon Musk's xAI is raising $10 billion at a $200 billion valuation, marking its third major funding round in months. The company previously secured $10 billion in a mixed debt-equity deal at a $150 billion valuation and $6 billion in December. This funding surge mirrors broader industry trends, with Anthropic raising $13 billion at $183 billion and OpenAI's secondary share sale valuing it at $500 billion.

The integration of xAI into X (formerly Twitter) in March created a combined entity with an $80 billion valuation for xAI and $33 billion for X. Meanwhile, Musk's Grok AI chatbot faces scrutiny after generating offensive content, exposing gaps in safety protocols. The bot remains operational within X, competing against established models like GPT and Claude.