Elon Musk’s xAI secures $10 billion to expand its AI operations as Musk’s clash with President Donald Trump over government spending heats up again.
Elon Musk’s artificial intelligence firm xAI has secured $10 billion in fresh capital, doubling down on its challenge to OpenAI as the race to dominate the AI landscape intensifies. The funds were evenly split between secured debt and strategic equity investments.
The influx gives xAI more resources to expand its Memphis-based Colossus supercomputer and train its Grok chatbot, CNBC reported Tuesday, citing Morgan Stanley. The funding round was reportedly oversubscribed, with major investors vying for a stake in Musk’s AI vision.
Musk’s AI push comes as American rivals race ahead. OpenAI closed a $40 billion raise earlier this year at a staggering $300 billion valuation, while Anthropic secured fresh backing that pushed its value beyond $60 billion.
