Elon Musk has rejected reports that his artificial intelligence venture xAI is gearing up for a new fundraising round.
A report had suggested that the company is looking at a funding round that could value the company between $170 billion and $200 billion.
What Happened: Saudi Arabia’s Public Investment Fund (PIF) was reported to play a crucial role in this deal, according to a Financial Times report. PIF already has an indirect stake in xAI through its investment in Kingdom Holdings Company, which has committed $800 million to the firm.
Amid these reports, Musk commented on X, stating, “xAI is not seeking funding right now. We have plenty of capital.”
In late June, Morgan Stanley disclosed that xAI had completed a $5 billion debt raise and a separate $5 billion strategic equity investment. This move is part of the startup’s strategy to enhance its AI infrastructure through data centers amid increasing competition.
In March, xAI acquired Musk’s social media platform, X, formerly known as Twitter, valuing xAI at $80 billion. The company aims to generate over $13 billion in annual earnings by 2029, according to a Reuters report.
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Why It Matters: The potential valuation of xAI at up to $200 billion highlights the company’s rapid growth and ambition in the AI sector. Recently, xAI launched Grok 4, touted as the world’s most powerful AI model, surpassing competitors like OpenAI’s ChatGPT and Google’s Gemini.
Additionally, Musk announced that Grok 4 will soon be integrated into Tesla Inc. (NASDAQ:TSLA) vehicles, further expanding its applications.
Musk's xAI had recently hired Katie Miller, wife of President Donald Trump‘s Deputy Chief of Staff Stephen Miller, as a communications manager.
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