{"id":34141,"date":"2025-07-11T19:48:51","date_gmt":"2025-07-11T19:48:51","guid":{"rendered":"https:\/\/financialrush.com\/?p=34141"},"modified":"2025-07-11T19:48:51","modified_gmt":"2025-07-11T19:48:51","slug":"elon-musks-xai-seeks-up-to-200bn-valuation-in-next-fundraising","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=34141","title":{"rendered":"Elon Musk\u2019s xAI seeks up to $200bn valuation in next fundraising"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=25aab987-c2a1-4fca-8883-38a617269b68\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Elon Musk\u2019s xAI is preparing to raise more money from investors in a deal that could value the artificial intelligence company as high as $200bn \u2014 10 times its value early last year, according to people close to the talks.<\/p>\n<p>The fundraising, which is being discussed and could start formally next month, would be its third large share sale in less than two months. It raised $10bn through loans and cash investments in July, and in June sold $300mn of shares in a secondary stock offering. <\/p>\n<p>A deal would also cement a rapid rise in xAI\u2019s valuation from the $18bn set in its \u201cseries B\u201d fundraising in May 2024. <\/p>\n<p>The company this week released the fourth model of its Grok chatbot, which posts on Musk\u2019s social media platform X \u2014 days after the bot repeatedly <a href=\"https:\/\/www.ft.com\/content\/ea64824b-0272-4520-9bed-cd62d7623064\" data-trackable=\"link\">praised Adolf Hitler<\/a> and shared antisemitic rhetoric on the platform. The company pledged to ban hate speech from its posts. <\/p>\n<p>Three people close to the process said the new fundraising would target a valuation of between $170bn and $200bn. They cautioned the talks were preliminary and the details could change. <\/p>\n<p>Saudi Arabia\u2019s sovereign wealth fund, PIF, is expected to play a large role in the deal, two of the people said. PIF holds an indirect interest in <a href=\"https:\/\/www.ft.com\/stream\/7ca0392b-5e25-4e22-a988-f2a10967784b\" data-trackable=\"link\">xAI<\/a> through its stake in Kingdom Holdings Company, which has invested $800mn in xAI.<\/p>\n<p>xAI did not respond to requests for comment. PIF declined to comment.<\/p>\n<p>xAI acquired X in March in an all-stock deal for $45bn. The transaction valued the combined company at $113bn. That would grow to about $245bn if the latest xAI fundraising is successful.<\/p>\n<p>Another Musk company, SpaceX, has surged in value recently. The rocket and satellite group is preparing to sell about $1bn of its shares in a deal that would value it at $400bn, the Financial Times reported this week. <\/p>\n<p>Musk\u2019s companies \u2014 including Tesla and brain chip company Neuralink \u2014 initially benefited from the entrepreneur\u2019s connections to US President Donald Trump following November\u2019s election. <\/p>\n<p>Musk was one of Trump\u2019s biggest backers, spending more than $250mn on his campaign, but a public spat last month has led to concern about blowback on some of his businesses. <\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image js-teaser\" data-id=\"7c9468c2-4dd7-458d-b58c-c8af3ea92cc8\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/7c9468c2-4dd7-458d-b58c-c8af3ea92cc8\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2048\/1152\"><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>The value of his private companies suggests investors are looking past the risks of Trump targeting Musk\u2019s businesses. However, shares in Tesla have fallen nearly a fifth since the start of the year.<\/p>\n<p>xAI launched in 2023 shortly after OpenAI released its chatbot ChatGPT, which exploded in popularity. Musk was a co-founder of OpenAI in 2015 but he left in 2018, and has since been a vocal critic of the company and its chief executive Sam Altman. OpenAI was valued at $300bn as part of a fundraising earlier this year.<\/p>\n<p><em>Additional reporting by Hannah Murphy<\/em> <\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/25aab987-c2a1-4fca-8883-38a617269b68\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this&hellip;\n","protected":false},"author":5,"featured_media":34142,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-34141","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34141"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34141\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/34142"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}