Elon Musk’s xAI Nears New Funding, Doubling Its Valuation To $230B: Report

• XAI is in advanced talks to raise $15 billion in equity funding.
• The bump in valuation would mark a two-fold rise from the $113 billion valuation xAI disclosed in March
• The WSJ reported that Elon Musk’s wealth manager shared details of the round with the company's other investors on Tuesday.

Elon Musk’s xAI is in advanced talks to raise $15 billion in equity funding at a potential valuation of $230 billion, the Wall Street Journal reported late on Tuesday. 

That would mark a significant jump from the $113 billion valuation xAI disclosed in March, when the company absorbed social media platform X. Although Musk has denied earlier media reports about the fundraise, the Journal reported that Musk’s wealth manager, Jared Birchall, disclosed the details of the said round to company investors on Tuesday.

The Journal’s report is based on unnamed sources. It did not include the names of the potential investors.

The deal is likely intended to help fund the company’s expansion of its AI infrastructure. XAI is building a massive data center complex and a supercomputer, dubbed Colossus, in Memphis, Tennessee. The company purchased a 1-million-square-foot property in the city earlier this year and, in July, raised $10 billion in equity and debt, including $2 billion from Musk’s SpaceX, partly to fund the project.

XAI’s Grok competes directly with OpenAI’s ChatGPT, Google’s Gemini, and other leading AI bots. The startup recently lost several senior executives, including X CEO Linda Yaccarino and the finance chiefs at X and xAI.

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