Catenaa, Monday, June 02, 2025- Elon Musk’s xAI is launching a $300 million share sale that values the group at $113 billion, The Financial Times reported on Monday.
The report quoting sources said the deal will allow staff to sell shares to new investors, validating the pricetag struck when Musk’s xAI start-up acquired his social media service X in March.
The secondary stock offering, known as a tender offer, is expected to be followed by a larger investment round in which the company will offer new equity to outside investors, sources told the Financial Times.
The March takeover valued the overall group at $113 billion: pricing xAI at $80 billion with X at $33 billion.
The new share sale comes after Musk, who helped bankroll Donald Trump’s US presidential campaign, stepped back last week from his role heading the administration’s cost-cutting initiative.
His time at the so-called Department of Government Efficiency (Doge) came to an end after he clashed with cabinet secretaries and criticised central parts of the Trump administration’s policy agenda.
The Tesla and SpaceX chief said he was refocusing on his business holdings after his companies suffered what he called “blowback” over his ties to the president.
“Back to spending 24/7 at work and sleeping in conference/server/factory rooms,” Musk wrote on X late last month. “I must be super focused on X/xAI and Tesla . . as we have critical technologies rolling out,” he said
The AI start-up obtained a $45 billion valuation in a $5 billion private funding round late last year. Musk last year granted investors who backed his Twitter acquisition, including large venture capital firms such as Sequoia Capital and Andreessen Horowitz, 25% of the shares in xAI.
