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Musk’s xAI Targets Massive Valuation in Upcoming Fundraising

July 14, 2025

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Elon Musk’s AI company, xAI, is reportedly preparing for a new fundraising round that could value the firm between $170 billion and $200 billion, according to sources cited by the Financial Times. Saudi Arabia’s Public Investment Fund (PIF) is expected to play a significant role in the deal, partly through its indirect stake in xAI. Earlier, xAI secured $5 billion in both debt financing and strategic equity investment to scale its infrastructure, including data centers. Musk launched xAI in July 2023 as a competitor to OpenAI’s ChatGPT. The startup has ambitious plans, forecasting annual earnings of over $13 billion by 2029.

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