Elon Musk's 'xAI' Completes $10 Billion Fundraising

Elon Musk, CEO of Tesla, has successfully completed a fundraising round of $10 billion (approximately ₩13 trillion 600 billion) for his artificial intelligence (AI) company, xAI. The newly raised capital is expected to be used for further advancement of AI models and the construction of data centers.

On the 1st (local time), the American investment bank Morgan Stanley announced that xAI had raised $5 billion (about ₩6 trillion 800 billion) through bond issuance, loans, and attracting equity investors. It also reported that xAI secured an additional $5 billion in strategic equity investments. Morgan Stanley stated, "Key global bond investors participated, leading to oversubscription," and added, "This reflects investors' trust in xAI's vision to advance scientific discoveries and humanity’s understanding of the universe."

The newly raised funds are expected to be invested in large-scale AI infrastructure. Last September, xAI built the 'Colossus' data center near Memphis, Tennessee, United States. Initially, Colossus was equipped with 100,000 NVIDIA GPUs, but xAI is currently expanding the infrastructure at Colossus to accommodate as many as 1 million GPUs, making it the largest in the world. Musk recently revealed in an interview with CNBC that 200,000 GPUs have already been installed at Colossus. xAI is also expected to further develop its large language model (LLM), Grok.

However, it was reported that the bond and loan rates issued by xAI this time were set above average. According to Bloomberg News, investors demanded better terms due to concerns about xAI's financial status and the reported conflict between Musk and U.S. President Donald Trump. Previously, xAI raised $6 billion last year, achieving a company valuation of $50 billion.

Silicon Valley=Correspondent Youngchan Song 0full@hankyung.com