Elon Musk’s artificial intelligence venture, xAI, is reportedly nearing a massive $15 billion equity raise, a deal that could lift the company’s valuation to approximately $230 billion, almost twice its last confirmed valuation.
The fundraising proposal was outlined to investors by Jared Birchall, Musk’s long-time wealth adviser, during a late-night briefing. The move signals Musk’s growing ambitions to transform xAI into a heavyweight competitor in the global AI landscape, taking on industry leaders such as OpenAI, Google DeepMind, and Anthropic. Insiders say it’s still unclear whether the projected valuation is pre-money or post-money.
Sources familiar with the talks reveal that negotiations have intensified in recent weeks, particularly with sovereign wealth funds, major institutional backers, and prominent tech-focused venture capital firms. If completed, the raise would stand as one of the largest single funding rounds ever secured by an AI startup.
Political Backdrop: Musk Returns to White House Circle
The funding momentum coincides with Musk’s recent appearance at a black-tie dinner hosted by President Donald Trump, attended by Saudi Crown Prince Mohammed bin Salman. The event marked Musk’s first time at the White House since his May departure from his role at the Department of Government Efficiency (DOGE).
Though Musk and Trump had previously clashed publicly, and Musk had hinted at launching a new “America Party”, his attendance is now seen as a possible sign of improving relations, adding a geopolitical dimension to xAI’s fundraising efforts.
xAI Accelerates Growth Amid Fierce AI Competition
Launched in 2023 following Musk’s split with OpenAI leadership, xAI set out to build what Musk calls “maximally curious” artificial general intelligence. The company has since expanded rapidly, hiring top-tier talent from major tech firms and rolling out its proprietary AI assistant, Grok.
A successful funding round would significantly strengthen xAI’s rapid expansion strategy. The company is already developing its massive Colossus supercomputer in Memphis, Tennessee, designed to support next-generation AI training workloads.
This new fundraising effort follows a $10 billion round earlier in 2025, made up of $5 billion equity and $5 billion debt, with SpaceX contributing $2 billion. Those funds helped scale xAI’s infrastructure and model development pipeline, laying the foundation for its current growth surge.
AI Investment Surge Continues Globally
xAI’s latest fundraise comes amid an explosive wave of AI investment, as global companies race to build powerful models capable of transforming search, robotics, automation, enterprise software, and more.
If the $15 billion deal is finalised, xAI would become one of the most well-funded AI companies on the planet, placing Musk’s venture squarely in the top tier of AGI contenders.
