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Elon Musk’s xAI is raising $10 billion from investors in a round that values the artificial intelligence startup at $200 billion, sources told CNBC’s David Faber.
It’s the latest example of skyrocketing valuations for companies developing foundational AI models. Earlier this month, Anthropic raised $13 billion at a $183 billion valuation. OpenAI, the largest company in the industry, held a secondary share sale that valued it at $500 billion.
The fundraising comes weeks after Musk raised $10 billion in debt and equity at what was believed to be a roughly $150 billion valuation, according to Faber. Last December, xAI raised $6 billion to fund its AI development.
However, xAI has been riddled with controversy due to incidents in which its Grok chatbot praised Adolf Hitler and attacked Jewish people and a separate occasion when Grok responded to user queries with unrelated comments about “white genocide” and South Africa.
