Musk’s xAI Nears $15 Billion Funding Deal, Targeting $230 Billion Valuation
Elon Musk’s artificial intelligence company, xAI, is reportedly in advanced talks to raise $15 billion in new equity financing, a move that could push the company’s valuation to around $230 billion, nearly double its last publicly known figure.
Details of the fundraising plans were presented to investors by Jared Birchall, Musk’s long-time wealth manager, during a late-night investment pitch. The discussions signal Musk’s intention to expand xAI into a fierce competitor to OpenAI, Google DeepMind, Anthropic, and other leading AI labs. Sources indicate that it is unclear whether the proposed $230 billion valuation is pre-money or post-money.
According to individuals familiar with the negotiations, talks have accelerated in recent weeks, involving sovereign wealth funds, major institutional investors, and top-tier tech-focused VC firms. If finalised, the deal would become one of the largest single funding rounds ever raised by an AI startup.
Political Context: Musk Reappears at White House Event
The fundraising push comes just days after Musk attended a black-tie dinner hosted by President Donald Trump for Saudi Crown Prince Mohammed bin Salman. The dinner marked Musk’s first return to the White House since stepping down in May as a special government employee overseeing the Department of Government Efficiency (DOGE).
Despite previously clashing publicly with Trump and hinting at launching a breakaway “America Party”, Musk’s attendance suggests a thawing relationship between the two, raising questions about geopolitical influence over the new funding negotiations.
xAI Expands as AI Race Intensifies
Founded in 2023 after Musk’s fallout with OpenAI’s leadership, xAI launched with the mission of building what Musk describes as “maximally curious” AGI. Since then, the company has rapidly grown its talent pool, recruiting experts from leading tech companies and launching its own AI model, Grok.
If the funding round succeeds, it would significantly accelerate xAI’s expansion efforts. The company is already scaling its infrastructure footprint—most notably with the Colossus supercomputer under development in Memphis, Tennessee, designed to support next-generation model training.
This latest fundraising effort follows a $10 billion raise earlier in 2025, which combined $5 billion in equity and $5 billion in debt, including a $2 billion contribution from SpaceX. Those funds were allocated to data centre construction and model development, laying the foundation for xAI’s aggressive growth trajectory.
AI Funding Wave Shows No Signs of Slowing
The new round comes at a time of unprecedented investment in artificial intelligence, with companies worldwide racing to build advanced models capable of powering the future of search, robotics, automation, enterprise tools, and more.
If successful, the raise would cement xAI as one of the most heavily funded AI players globally—positioning Musk’s company as a formidable challenger in the escalating battle for AGI leadership.
