01.07.2025 12:55
Elon Musk's ambitious artificial intelligence venture, xAI, has secured a substantial $10 billion funding injection, according to Morgan Stanley, the financial institution overseeing the deal. This significant capital infusion comprises a blend of secured notes and term loans, accounting for half the total, and a strategic equity raise that contributed the remaining half. Morgan Stanley noted that the debt portion of the financing was oversubscribed, attracting a considerable number of prominent global debt investors, although specific names remain undisclosed.
The newly acquired capital will be primarily dedicated to bolstering xAI's infrastructure and accelerating development of its flagship AI chatbot, Grok. Designed as a direct competitor to OpenAI's ChatGPT and Anthropic's Claude, Grok represents Musk's primary foray into the rapidly evolving generative AI landscape. xAI's overarching objective is the creation of a large-scale AI system capable of autonomous development and seamless integration with Musk's X platform (formerly Twitter), aiming for what Musk describes as a "maximally truth-seeking" AI, a description that has generated considerable controversy, particularly regarding Grok's responses to politically charged queries.
This substantial investment follows the May revelation of xAI's Colossus supercomputing facility in Memphis, Tennessee, housing an impressive 200,000 GPUs crucial for model training. Musk's announcement also included plans for a dramatically expanded facility, boasting a million GPUs, in close proximity to the existing Memphis site. Nvidia and AMD, leading figures in AI hardware manufacturing, are supplying the necessary GPUs for both facilities. According to Morgan Stanley, this $10 billion investment will underpin the development of one of the world's largest AI data centers and fuel the ongoing refinement of xAI's flagship product, Grok. This includes further training of future iterations of the chatbot, with Grok 3, the most recent version, launched earlier this year in February.
The acquisition of X by xAI in March, valuing X at $33 billion and xAI at $80 billion, further underscores the significant investment in the company. However, the precise impact of this latest funding round on xAI's overall valuation remains unclear.
