Elon Musk’s xAI nears $15bn funding round, boosting company valuation

Elon Musk’s artificial intelligence (AI) venture, xAI, is once again making headlines as it enters advanced negotiations for a $15 billion equity raise.

According to a Wall Street Journal report, the potential deal would more than double the company’s last known valuation of around $113 billion, cementing xAI as one of the most aggressively expanding players in the AI race.

As reported, Musk’s wealth manager, Jared Birchall, has been briefing investors on the proposed terms, though it remains unclear whether the figure reflects a pre- or post-money valuation.

Recent reports indicated that xAI had already secured about $10 billion by September, putting the company at a $200 billion valuation.

The new funding is expected to support xAI’s ambitious infrastructure plans, including its colossal Memphis data-centre project, powered by the supercomputer “Colossus.”

Earlier this year, xAI also acquired a one-million-square-foot facility to anchor the development.

With the rollout of Grok 4.1 promising improved speed and quality, Musk appears determined to position xAI as a formidable rival to ChatGPT, Google Gemini, and Microsoft Copilot, signaling another seismic shift in the AI landscape.