Elon Musk’s xAI startup aims to raise $4.3 billion

Elon Musk’s startup xAI is in talks to raise $4.3 billion in equity financing, Bloomberg reports. These funds could supplement the previously discussed $5 billion in debt financing aimed at merging X and xAI.

The company already received $6 billion in December, but sources say most of that money has already been spent. This forces xAI to re-enter the capital market just six months after the previous round.

xAI’s flagship product is the Grok chatbot integrated into the X social network, as well as the Aurora image generator. Both solutions require significant computing resources and infrastructure investments.

Analysts believe that such an active pace of funding is not only due to high costs, but also Musk’s desire to accelerate competition with OpenAI and other AI leaders.

Including previously raised capital, the total investment in xAI could exceed $15 billion. It is expected that some of the new funds will also be used to expand data centers and purchase GPUs.