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Elon Musk’s artificial intelligence startup, xAI, is seeking $4.3 billion in new equity financing, Bloomberg reports, signaling an aggressive expansion push for the company.
The latest funding comes in addition to a separate $5 billion debt financing plan announced earlier this month. The fundraises underscore Musk’s renewed focus on building out his AI ventures after leaving the Trump administration and the Department of Government Efficiency (aka DOGE) in May.
Last year, xAI raised $6 billion in a Series B round in May and another $6 billion in a Series C round in December, which included investments from Andreessen Horowitz, Sequoia Capital, Fidelity, BlackRock, the Qatar Investment Authority, and Kingdom Holding Company.
Following the Series C funding round, xAI was valued at $50 billion.
In March, xAI acquired X (formerly Twitter), Musk’s social media platform, through an all-stock transaction, granting xAI access to a massive real-time data stream for training its AI systems. At the time of the acquisition, the combined value of xAI and X stood at $113 billion.
@xAI has acquired @X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).
Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at…
— Elon Musk (@elonmusk) March 28, 2025
The company has also invested heavily in hardware, building a supercomputer nicknamed Colossus, which is expected 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 at the Futurum Group, told Decrypt. “Musk just showed us the going rate to play: $9.3 billion and counting.”
While the specifics of the investor composition remain undisclosed, the combined $9.3 billion financing package, comprising both debt and equity, will finance xAI’s expansion into larger data centers and the continued deployment of its flagship chatbot, Grok.
According to investor briefings cited by Bloomberg, xAI has already spent the majority of the $14 billion it raised prior to this latest fundraising effort.
“This is infrastructure capital—poured into GPUs, training runs, and the bandwidth layer that turns AI hype into functionality,” Boloor added. “Musk isn’t building an app; he’s buying the base layer. And he’s betting that whoever controls computing power controls the future.”
xAI did not respond to Decrypt's requests for comment.
Edited by James Rubin