Elon Musk’s xAI in Talks to Raise $15 B, Valuing It at $230 B

Elon Musk’s artificial-intelligence company, xAI, is reportedly in advanced discussions to raise US$15 billion in a fresh equity round, which could value the firm at US$230 billion, according to media reports. The fundraising terms were shared by Musk’s wealth manager, Jared Birchall, though it remains unclear if the valuation is pre- or post-money.

xAI’s only public response to enquiries framed the reports as “legacy media lies,” signaling caution or frustration with external speculation. If the valuation is accurate, it would more than double xAI’s earlier worth, previously pegged at US$113 billion following its merger with Musk’s social-media platform.

The company is aggressively scaling its infrastructure, having built out data centers and partnered on a supercomputer project in Tennessee, underlining its ambition to compete directly with other AI leaders.

Analysis / Impact:
This potential capital raise would represent a bold bet by Musk on xAI’s future — one driven by the need to fund compute-heavy AI research and to scale up rapidly. The size of the transaction underlines investor confidence in his vision, but also highlights the massive financial burden of developing next-generation AI.

If completed, the deal would significantly enhance xAI’s firepower to go head-to-head with major competitors in AI, but it also raises questions about how sustainably it can convert cash into long-term value. For emerging markets like Nigeria and Africa more broadly, it signals how capital-intensive the future of AI infrastructure is — and how deep-pocketed players are preparing to dominate key parts of the value chain.