Musk's xAI Rakes in $10 Billion, Reaches $200 Billion Valuation

Elon Musk's artificial intelligence company xAI raised over $10 billion in fresh capital, taking its valuation to around $200 billion and solidifying its position among the globe's most valuable startups.

The funding round featured participation from Valor Capital, Qatar Investment Authority, and Saudi Crown Prince Mohammed bin Salman's Kingdom Holding Co., said people familiar with the situation. CNBC initially reported the deal as closed.

Musk has been going all-out in raising capital to keep up with the fast-rising AI competition, where OpenAI, Alphabet, and Meta are shelling out tens of billions of dollars on infrastructure and data centers. Even with its record-breaking valuation, xAI has been burning money deeply, with Bloomberg reporting last year that the company was losing about $1 billion a month due to high infrastructure expenses.

The investment speaks to both investor faith in Musk's future plans for AI and the stiff competition defining the future of artificial intelligence.