According to the Wall Street Journal, xAI is in the final stages of negotiations to raise $15 billion in new capital at a $230 billion valuation. If the new terms, presented to investors by Musk’s financial manager Jared Birchall, are accepted, the company’s market value would more than double the $113 billion recorded in March when it merged with the “X” social network.
The funds are primarily planned to expand infrastructure, particularly the “Colossus” supercomputer project being built in Tennessee, and to train more advanced AI models. In parallel, Tesla shareholders also approved an investment in the xAI startup earlier this month, strengthening the integration between Musk’s companies.
Interestingly, Elon Musk last week called similar reports in the media “false.” In response to Reuters’ inquiry about this latest news, xAI issued an automated reply stating “Legacy Media Lies.” Despite warnings of a potential bubble in the AI sector, investor appetite for this field remains high.
