Catenaa, Tuesday, June 17, 2025- Elon Musk’s artificial intelligence startup xAI is in talks to raise $4.3 billion through an equity investment on top of the $5 billion debt funding plan, Bloomberg reported on Tuesday.
Citing information the company shared with investors who asked not to be identified, Bloomberg’s report said that xAI, which is responsible for the AI chatbot Grok, needs the new money, in part, because it has already spent most of what it previously raised.
Between its founding in 2023 and when the debt sale was launched this year, xAI raised $14 billion via equity fundraising, according to the materials shared with investors.
But as of March 31, only $4 billion of that was left on the company’s balance sheet, the information showed.
Commitments on the $5 billion debt sale are due Tuesday, the report said, quoting sources. In addition to the fresh funding, xAI may also get a $650 million rebate from one of its manufacturers that will help the firm cut costs.
Huge fundraising rounds have become a standard feature of the fiercely competitive artificial intelligence industry, in which the top players are jockeying to secure the expensive computer chips and infrastructure needed to train advanced AI models like Grok and ChatGPT.
Despite the big spending, potential xAI investors have been told that the company’s valuation grew to $80 billion at the end of the first quarter, up from $51 billion at the end of 2024.
Musk recently decided to merge xAI with his social media company X, but the new funds will go toward the AI operations.
