Elon Musk’s xAI seeks $4.3 billion in new funding

Elon Musk’s artificial intelligence company, xAI, is working to raise $4.3 billion through a new round of equity funding, according to reports from Bloomberg News. This comes on top of a $5 billion debt funding plan already in progress. Since starting in 2023, xAI has raised $14 billion in equity, but only $4 billion was left in its accounts by March 31. The company is also expecting a $650 million refund from a supplier, which could help lower its costs.

The new funds will support xAI’s goal to grow its AI technology and compete with other major players in the industry. The company is spending heavily, with $18 billion planned for data center investments after already spending $2.6 billion. By 2029, xAI expects to earn over $13 billion annually, showing its big ambitions. This fundraising effort follows a $300 million share sale that valued xAI at $113 billion.

The company’s plans are drawing attention from investors excited about AI’s potential, despite a recent public disagreement between Musk and U.S. President Donald Trump. xAI’s work includes building a massive supercomputer in Memphis to train its AI, like the Grok chatbot, which aims to rival others like ChatGPT. Investors like Sequoia Capital and Andreessen Horowitz are reportedly involved, showing strong support for Musk’s vision to advance AI and scientific discovery.