Elon Musk’s artificial intelligence startup, xAI, is searching for $4.3 billion in fresh equity financing, Bloomberg reviews, signaling an aggressive enlargement push for the firm.
Basically the most popular funding comes to boot as to a separate $5 billion debt financing thought announced earlier this month. The fundraises underscore Musk’s renewed focal level on building out his AI ventures after leaving the Trump administration and the Division of Govt Effectivity (aka DOGE) in Will even simply.
Last yr, xAI raised $6 billion in a Sequence B round in Will even simply and one more $6 billion in a Sequence C round in December, which incorporated investments from Andreessen Horowitz, Sequoia Capital, Fidelity, BlackRock, the Qatar Funding Authority, and Kingdom Preserving Company.
Following the Sequence C funding round, xAI was once valued at $50 billion.
In March, xAI obtained X (previously Twitter), Musk’s social media platform, through an all-stock transaction, granting xAI receive admission to to a massive genuine-time recordsdata stream for practicing its AI programs. At the time of the acquisition, the blended fee of xAI and X stood at $113 billion.
@xAI has obtained @X in an all-stock transaction. The mix values xAI at $80 billion and X at $33 billion ($45B much less $12B debt).
Since its founding two years within the past, xAI has like a flash change into one among the leading AI labs on this planet, building units and recordsdata centers at…
— Elon Musk (@elonmusk) March 28, 2025
The firm has furthermore invested heavily in hardware, building a supercomputer nicknamed Colossus, which is anticipated to use more than 200,000 GPUs.
“This isn’t a hype cycle. It’s a capital regime shift—one where AI isn’t the bubble; it is the system,” Shay Boloor, chief market strategist on the Futurum Crew, instructed Decrypt. “Musk right confirmed us the going fee to play: $9.3 billion and counting.”
While the specifics of the investor composition remain undisclosed, the blended $9.3 billion financing kit, comprising each debt and equity, will finance xAI’s enlargement into bigger recordsdata centers and the persisted deployment of its flagship chatbot, Grok.
In step with investor briefings cited by Bloomberg, xAI has already spent the massive majority of the $14 billion it raised prior to this most popular fundraising effort.
“Here’s infrastructure capital—poured into GPUs, practicing runs, and the bandwidth layer that turns AI hype into efficiency,” Boloor added. “Musk isn’t building an app; he’s purchasing the inappropriate layer. And he’s making a bet that whoever controls computing energy controls the future.”
xAI didn’t answer to Decrypt’s requests for statement.
Edited by James Rubin
