Xai, an artificial intelligence startup from Elon Musk, is seeking $4.3 billion in new stock funding. Bloomberg Reports show that the company is actively promoting expansion.
The latest funding comes in addition to another $5 billion debt financing plan announced earlier this month. The fundraising highlights Musk’s new focus on building his AI venture after leaving the Trump administration and the Department of Government Efficiency (Doge) in May.
Last year, Xai raised $6 billion in the Series B round in May and another $6 billion in the Series C round in December.
Following the Series C funding round, Xai was valued at $50 billion.
In March, Xai acquired Musk’s social media platform X (formerly Twitter). This allowed Xai access to large real-time data streams to train AI systems. At the time of the acquisition, the total value of Xai and X was $113 billion.
@xai acquired @X in all share transactions. This combination is valued at $80 billion for Xai and $33 billion for X ($12 billion less for $45 billion).
Since its founding two years ago, Xai has quickly become one of the world’s leading AI labs.
– Elon Musk (@elonmusk) March 28, 2025
The company has also invested heavily in hardware and has created the nickname Colossus, which is expected to use more than 200,000 GPUs.
“This is not a hype cycle. It’s a shift in the capital administration. It’s where AI is not a bubble. teeth Shay Boloor, chief market strategist at Futurum Group, Decryption. “Musk counted at $9.3 billion and showed the rate he plans to play.”
While details of the investor composition remain private, the total $9.3 billion funding package, which includes both debt and equity, funds Xai’s expansion into large data centers and the ongoing deployment of flagship chatbot Grok.
According to the investor briefing cited by BloombergXai has already spent most of the $14 billion it raised ahead of this latest funding effort.
“It’s infrastructure capital. There’s a bandwidth layer that pours into GPUs, runs training, and turns AI hype into functionality,” Boloor added. “Mask isn’t building an app. He’s buying the base layer. And he’s betting that those who control computing power will control the future.”
Xai did not respond Decrypt’s Request a comment.
Edited by James Rubin
