Elon Musk’s AI startup xAI is in advanced discussions to raise $15 billion in new equity at a $230 billion valuation, the Wall Street Journal reported. The terms were reportedly shared with investors by Musk’s wealth manager Jared Birchall, though it’s unclear if the figure is pre- or post-money.
xAI, responding to Reuters, issued an automated message: “Legacy Media Lies.”
The potential valuation more than doubles the startup’s $113B mark disclosed when xAI merged with Musk’s platform X in March. Last week, Musk denied reports that xAI was raising $15B at a $200B valuation.
The startup—founded in July 2023—is racing to compete with OpenAI and Anthropic, rapidly expanding its data-center infrastructure and acquiring property in Memphis, Tennessee, for its planned Colossus supercomputer.
Musk has floated leveraging Tesla to support xAI, and Tesla shareholders recently approved an investment, though many abstained.
Investor appetite for AI remains intense despite rising warnings of an AI bubble amid soaring valuations and aggressive capital spending.