Elon Musk’s xAI Set to Close $15 Billion Funding Round at $230 Billion Valuation

November 26, 2025

Prime Highlight

xAI is preparing to close a massive $15 billion funding round on December 19, valuing the company at $230 billion pre-money, according to sources familiar with the deal.

A large portion of the new capital will go toward purchasing high-performance GPUs to support the development and scaling of the company’s AI models.

Key Facts

Investor allocations are due Tuesday, despite Musk previously dismissing reports that xAI was seeking to raise $15 billion.

The fundraising comes amid soaring valuations in the AI sector, with OpenAI reaching $500 billion in a recent share sale and Anthropic raising $13 billion in September.

Background

Elon Musk’s artificial intelligence startup xAI is preparing to close a $15 billion funding round next month, according to sources familiar with the deal. The round, expected to close on December 19, would value the company at a $230 billion pre-money valuation, the sources told.

Investors have been given an allocation deadline of Tuesday. The update supports earlier CNBC reporting that xAI was seeking to raise $15 billion, a claim Musk later dismissed as “false” on X, the social media platform he owns.

Sources said xAI plans to use a major share of the new capital to buy high-performance GPUs, which are essential for building and scaling large language models. The company, launched last year, is competing with fast-growing AI players, including OpenAI and Anthropic, both of which have raised large sums as demand for advanced AI tools continues to surge.

In September, CNBC reported that xAI initially aimed to raise $10 billion at a $200 billion valuation, signalling the speed at which investor interest has grown. Across the industry, valuations are climbing rapidly. OpenAI recently concluded a $6.6 billion share sale at a $500 billion valuation, while reports suggest the company is exploring a potential $1 trillion IPO. Rival Anthropic raised $13 billion in September, tripling its valuation since March.

xAI is best known for its Grok chatbot. The company recently introduced Grokipedia, an AI-driven alternative to Wikipedia.

Earlier this year, Musk said he would merge xAI with X and valued the social media platform at $33 billion. He is doing this to expand the use of AI across his companies.