Elon Musk attends the U.S.-Saudi Investment Forum in Washington, D.C., U.S., November 19, 2025.
Evelyn Hockstein | Reuters
Elon Musk’s artificial intelligence startup xAI is reportedly on track to close a substantial $15 billion funding round next month, according to sources familiar with the matter. The anticipated pre-money valuation positions the company at a staggering $230 billion.
Sources indicate that the deadline for investment allocation is set for the end of day Tuesday, with the round expected to officially close on December 19th.
This development follows earlier reports indicating xAI’s intent to raise $15 billion, a claim Musk initially dismissed as “False” on his social media platform, X.
As previously reported, a significant portion of the raised capital will be allocated towards acquiring advanced graphics processing units (GPUs), essential for powering the large language models that underpin xAI’s AI initiatives. Industry experts note that access to cutting-edge GPU infrastructure is a critical bottleneck for AI companies looking to train and deploy increasingly sophisticated models.
Prior to this, sources suggested that xAI was contemplating a $10 billion raise at a $200 billion valuation. The increased funding target and valuation underscore the rapid evolution and intense competition within the AI landscape.
The impending xAI funding round is emblematic of the seemingly insatiable investor appetite for AI-driven ventures. Companies like OpenAI and Anthropic have secured billions in funding, achieving extraordinary valuations in the process. This influx of capital reflects the belief in the transformative potential of foundational AI models across various industries.
Sam Altman’s OpenAI recently finalized a $6.6 billion share sale, positioning the company at a $500 billion valuation. There are also unconfirmed reports suggesting the ChatGPT maker is exploring a potential initial public offering (IPO) that could value the company at over $1 trillion. These figures highlight the tremendous expectations surrounding the commercialization of advanced AI technologies.
Anthropic, another major player in the AI space, completed a $1.3 billion funding round in September, effectively tripling its valuation since March. This rapid appreciation underscores the market’s belief in Anthropic’s unique approach to AI safety and its potential to develop more controllable and beneficial AI systems.
xAI’s flagship product, the Grok chatbot, has faced scrutiny for its handling of sensitive content, including instances of hate speech. The company recently launched Grokipedia, an AI-powered alternative to Wikipedia, aiming to provide a more comprehensive and unbiased source of information.
Earlier this year, xAI merged with X, a move that placed a $33 billion valuation on the social media platform. The integration of AI capabilities into social media platforms is gaining momentum, with companies exploring personalized content recommendation, automated content moderation, and other innovative applications. The merger between xAI and X represents a bold step towards realizing that vision.
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