Elon Musk’s artificial intelligence venture, xAI, is seeking a staggering valuation of up to $200 billion in a new round of fundraising, signaling bold ambitions in the rapidly evolving AI sector. This move follows the $10 billion already raised—an even split between debt and equity—highlighting growing investor confidence in Musk’s latest tech pursuit.
xAI was launched in 2023 with the goal of building AI systems aligned with human values and understanding, positioning itself as a direct competitor to OpenAI, Anthropic, and Google DeepMind. With Musk’s branding power and his open criticism of existing AI frameworks, xAI has quickly attracted attention and deep-pocketed backers.
One early example of its capabilities is the Grok chatbot, the company’s flagship product that is integrated with X (previously Twitter). To compete with Nvidia and other producers of AI chips, insiders say the next round of money may help with talent acquisition, infrastructure development, and possible hardware partnerships.
xAI would immediately become one of the most valuable private AI companies in the world if it were to achieve the targeted $200 billion valuation. The lofty goal reflects investor interest as well as the growing competition to control next-generation AI innovation, which Musk obviously plans to lead.
