xAI, the artificial intelligence company founded by Elon Musk, has accelerated its growth with a new $10 billion investment package. According to the announcement by the US investment bank Morgan Stanley, the funding consists of $5 billion in debt and the remainder as equity.
Morgan Stanley stated that the debt was raised through secured bonds and term loans. xAI plans to use the investment to diversify its AI products, build a new data center, and expand the scale of its chatbot Grok.
According to Bloomberg, xAI is also in talks for a new funding round worth $20 billion. If completed, the deal is expected to value the company between $120 billion and $200 billion, potentially positioning xAI alongside industry giants like OpenAI, Anthropic, and Google DeepMind.
Founded in 2023, xAI embodies Elon Musk’s vision of developing “truth-seeking and beneficial” artificial intelligence. The company’s flagship AI model, Grok, is available to users on the X platform. With 35.1 million monthly active users, Grok is expected to enhance its capabilities and scale globally with the new funding.
