Elon Musk's xAI is reportedly seeking to raise $6.6 billion in a new equity funding round. This move aims to attract investors to support xAI's ongoing projects and development, potentially including its Grok chatbot and advanced AI infrastructure. The company's valuation has seen significant growth, reaching $80 billion in early 2025, up from $50 billion at the end of 2024. This reflects strong investor confidence in xAI's AI roadmap and its integration with X (formerly Twitter), which xAI acquired earlier this year.
Previous funding rounds have included investments from major players such as Sequoia Capital, BlackRock, Fidelity, Nvidia and AMD. The capital is expected to enhance xAI's computational capabilities, particularly at its Memphis data centre, which houses a substantial number of Nvidia GPUs. xAI's strategic goals include advancing its AI models, developing new consumer and enterprise products, and pushing the boundaries of AI research. This positions xAI as a formidable competitor to other AI leaders like OpenAI and Google DeepMind.
