Elon Musk’s artificial intelligence company xAI has reportedly begun negotiations to raise $15 billion, a move that could boost its valuation to around $230 billion, according to sources cited by The Wall Street Journal. The update was shared with potential investors on November 18, 2025, by Musk’s asset manager Jared Birchall.
The prospective valuation is more than double the roughly $113 billion figure associated with the company earlier this year, following its acquisition of the social platform X (formerly Twitter).
xAI is rapidly increasing spending as it accelerates the training of its AI models and expands the capabilities of its chatbot Grok, which Musk positions as a competitor to ChatGPT. Similar to other major players in the AI sector, the company aims to build a large-scale computational backbone capable of supporting advanced model development.
In June, xAI secured $5 billion in equity and $5 billion in debt financing to construct the Colossus data center in Memphis — a massive facility expected to become the core of xAI’s compute infrastructure. Sources also report that SpaceX invested roughly $2 billion in the previous funding round.
Musk has previously suggested that Tesla could participate in future xAI projects, though the idea drew mixed reactions from Tesla shareholders. Board chair Robyn Denholm expressed skepticism about the proposal, pointing to the lack of a thorough due-diligence process and stressing the need to consider shareholder sentiment.
Meanwhile, xAI faces mounting competition from OpenAI and other leading labs, prompting the company to accelerate Grok’s development. This expansion has occurred amid notable leadership departures, including former X CEO Linda Yaccarino and several finance executives from both X and xAI.
Earlier reports indicated that Nvidia may invest up to $2 billion in xAI as part of its broader strategy to support next-generation AI infrastructure.
