XAI Raises $10B, Total Funding Hits $17B

Elon Musk's AI company, xAI, has raised $10 billion in new funding, split evenly between secured debt and strategic equity investment, with Morgan Stanley advising on the deal. The funding will support expansion of xAI’s AI infrastructure, including the Colossus supercomputer in Memphis and development of the Grok AI platform, as xAI competes with leading firms like OpenAI and Anthropic. This funding round follows a previous $6 billion raise, bringing the company's total capital raised to about $17 billion, and comes amid reports of a high financial burn rate. The oversubscribed round attracted major global investors and has spurred speculation about future equity raises that could push xAI's valuation above $120 billion. The announcement coincided with renewed public tensions between Musk and former President Donald Trump over government subsidies, with Musk distancing himself from federal support. xAI’s aggressive fundraising highlights the intensifying competition in artificial intelligence, with major investments from players like Alphabet and Microsoft.