The company xAI, founded by Elon Musk, has begun negotiations to raise new capital amounting to $15 billion. If the deal is successfully completed, the company’s valuation could rise to $230 billion, more than double the firm’s worth after the acquisition of the social network X in March, when it was valued at $113 billion.
This is reported by Finway
Investment Attraction and Infrastructure Development
The investment activity of xAI is linked to the need for large-scale infrastructure development and the rising costs of training artificial intelligence. It has been reported that Elon Musk’s asset manager, Jared Birchall, informed potential investors about the parameters of the new investment deal on November 18, 2025.
In June of this year, the company already secured $5 billion in equity and $5 billion in debt for the construction of a modern data center, Colossus, in Memphis. The new facility is expected to become a crucial element of xAI’s computing base, providing capabilities for large-scale computations and the development of AI solutions. Additionally, in the previous funding round, SpaceX invested approximately $2 billion in xAI.
Enhancing Grok’s Capabilities and Personnel Changes
xAI is actively working on improving its chatbot Grok, aiming to strengthen competition with OpenAI and make its product a full-fledged alternative to ChatGPT. To achieve this, the company is systematically increasing its spending on training artificial intelligence models and building computational infrastructure.
Tesla’s chairwoman, Robyn Denholm, expressed doubts about the logic of such investments. She emphasized the lack of necessary comprehensive due diligence and promised to listen to shareholders’ opinions.
Previously, Elon Musk also mentioned the potential involvement of Tesla in the xAI project, but this issue has sparked mixed reactions among the automaker’s shareholders.
However, the expansion process has also been accompanied by personnel losses. Several executives have left the company, including former X CEO Linda Yaccarino, as well as some financial directors from X and xAI.
It is worth noting that, according to preliminary reports, Nvidia Corporation is also planning to invest up to $2 billion in Musk’s startup xAI.