The startup xAI, founded by Elon Musk to advance artificial intelligence, has announced the acquisition of $10 billion in funding. The investment consists of $5 billion in secured debt and $5 billion in strategic investments.
This is reported by Finway
Investments in Grok Development and the Colossus Supercomputer
The funds raised by xAI will be directed towards expanding infrastructure, including increasing data center capacities and developing its own AI model, Grok. Special attention will be given to scaling the Colossus supercomputer in Tennessee, which currently utilizes over 200,000 graphics processors. Musk aims to increase this number to one million GPUs, continuing collaboration with companies like Nvidia and AMD to ensure a sufficient supply of chips for AI systems.
Experts note that the new investments will allow xAI to accelerate the development of Grok and strengthen its position in competition with market giants such as OpenAI and Anthropic.
Musk Positions Grok as an Alternative to OpenAI
The AI model Grok 3, introduced in February 2025, is already integrated into the social network X (formerly Twitter), which xAI acquired in March as part of a $33 billion deal. It is estimated that xAI’s market value has reached $80 billion, although it is unclear whether this has changed after the latest round of investments. It is worth noting that just last year, the company raised $6 billion at a valuation of $50 billion.
Demand for xAI’s debt securities was high among international institutional investors. According to analysts at Morgan Stanley, this indicates a growing interest in infrastructure AI platforms in the U.S., where competition among private companies is becoming increasingly fierce.
Musk positions Grok as an “awakened” model focused on truth, publicly criticizing competitors for ideological censorship.
Musk’s conflict with OpenAI intensified amid his attempts to acquire the company for $97.4 billion in February 2025—an initiative that was rejected by Sam Altman. Musk publicly claims that OpenAI has strayed from its stated non-profit principles in favor of profitability.
xAI’s main competitor, OpenAI, recently raised $40 billion at a valuation of $300 billion. Anthropic, in turn, received a valuation of $61.5 billion and opened a five-year credit line of $2.5 billion in May 2025. These funds are aimed at acquiring chips and developing data centers for further enhancement of AI platforms.