Elon Musk’s artificial intelligence startup xAI is reportedly in advanced talks to raise $15 billion in new equity at a valuation of $230 billion, according to a Wall Street Journal report published Tuesday.
The terms of the fundraising were presented to investors by Musk’s wealth manager, Jared Birchall, on Tuesday night. The report noted that it was unclear whether the valuation Birchall shared was based on pre-money or post-money figures.
Reuters was unable to independently verify the information, and Birchall could not be reached for comment. In response to a Reuters inquiry, xAI issued what appeared to be an automated reply stating: “Legacy Media Lies.”
If confirmed, the new valuation would more than double xAI’s previous $113 billion valuation disclosed when the company merged with Musk’s social platform X in March.
Last week, Musk dismissed as “false” a CNBC report that claimed xAI was raising $15 billion in a Series E round valuing the company at $200 billion. The firm has been rapidly expanding its data-center capacity to train more advanced AI models, aiming to compete with OpenAI’s ChatGPT and Anthropic’s Claude.
Founded in July 2023 as a direct competitor to OpenAI, xAI is also investing heavily in infrastructure, including a major property purchase in Memphis, Tennessee, where it plans to build its Colossus supercomputer.
Musk has previously suggested that Tesla could support xAI. Earlier this month, Tesla shareholders approved an investment in the startup, although a significant number abstained.
Investor demand for AI companies remains strong despite rising concerns about a potential AI bubble driven by soaring valuations and aggressive spending.
