Musk's xAI seeks to raise $4.3 billion in new funding

YM Lee

Summary

Bloomberg reported that Elon Musk's artificial intelligence startup xAI is seeking to raise $4.3 billion in new funding.
xAI previously raised around $14 billion through equity investments and stated that it is now negotiating to bring in additional funds via equity financing.
Since most of the existing funds have been spent on AI infrastructure development, the need for new capital raising is urgent.

Elon Musk's artificial intelligence startup xAI is reportedly seeking to raise approximately $4.3 billion in new funding.

On the 18th (local time), Bloomberg reported, citing anonymous sources, "xAI is negotiating to raise an additional $4.3 billion through equity investments, in addition to the $5 billion in loans it recently attempted to secure from bond investors."

xAI, which developed the AI chatbot Grok, has exhausted most of its previously raised funds on platform and AI infrastructure development, making the need for new capital urgent.

Founded in 2023, xAI had raised about $14 billion through equity investments before starting debt sales this year.