Elon Musk’s xAI Raises $10B, Valued at $200 Billion

Elon Musk’s artificial intelligence venture, xAI, has made headlines again by securing over $10 billion in fresh funding, propelling its valuation to an eye-popping $200 billion. The milestone positions xAI among the world’s most valuable startups, signaling Musk’s serious push into the AI arena.

The latest funding round drew investments from major players, including Valor Capital, the Qatar Investment Authority, and Saudi Crown Prince’s Kingdom Holding Co. The deal was confirmed by sources close to the negotiations, highlighting strong global interest in Musk’s AI ambitions.

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xAI’s rise comes amid an intense AI race, with giants like OpenAI, Alphabet, and Meta investing tens of billions in AI infrastructure and research. Musk, too, has poured heavily into technology and data centers, with reports earlier this year indicating that xAI was burning around $1 billion per month due to these massive infrastructure costs.

Despite the high valuation, xAI has been navigating operational challenges, including cutting 500 jobs in a recent Grok restructuring. The company is also planning to bring in specialist AI tutors, signaling a strategic pivot towards building highly skilled AI talent internally.

With its new funding and ambitious growth plans, xAI aims to strengthen its foothold in the competitive AI landscape, setting the stage for the next phase of innovation under Musk’s leadership.