xAI Reportedly Secures $10 Billion Funding, Pushing Valuation To $200 Billion

Elon Musk’s artificial intelligence startup, xAI, has secured $10 billion in new funding, valuing the company at approximately $200 billion. 

CNBC reported the deal citing sources, which follows discussions in July that xAI was looking to raise fresh capital at a similar valuation. At that time, the company had already raised $10 billion, split evenly between debt and equity at a valuation of around $150 billion. xAI was waiting to launch its additional fundraising until after unveiling Grok 4, its latest AI model, a person familiar with the matter told Bloomberg at the time. 

CNBC noted that Grok is still viewed as trailing OpenAI’s GPT and Anthropic’s Claude in capabilities and user base. On Stocktwits, retail sentiment around xAI, which is not publicly listed, was in ‘neutral’ territory – at par with Anthropic, which also saw sentiment in the ‘neutral’ zone. Meanwhile, retail sentiment around OpenAI was in ‘extremely bullish’ territory amid ‘high’ levels of chatter.

In May, Musk said he intends to buy as many as one million AI chips to power xAI’s next phase of growth. According to the report, a fair share of the new capital is expected to fund data centers with Nvidia and AMD GPUs, the chips needed to train next-generation AI systems, and to recruit top talent.

xAI, which also owns the social media platform X in addition to the GrokAI chatbot, has already installed about 200,000 GPUs at its Colossus site in Memphis and is planning a one-million-GPU facility nearby, Musk said at the time. He did not disclose how many chips have been ordered or when they will be fully deployed. “A few years ago, I made a very obvious prediction, which is that the limitation on AI will be chips,” Musk said.

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