Tesla, Inc. (TSLA.US) CEO Musk's xAI has recently raised $20 billion, with a company valuation estimated to reach $230 billion.

On Tuesday, xAI, an artificial intelligence company owned by Tesla, Inc. (TSLA.US) CEO Musk, announced that it had raised a total of $20 billion in its latest round of financing, significantly higher than the market's previous widespread expectation of $15 billion. Media had reported in November last year that this round of financing could bring xAI's overall valuation to around $230 billion. After media reports claimed the financing size was $15 billion, Musk publicly denied this on his social platform X, stating that the information was "not true." This round of financing attracted participation from several heavyweight investment institutions, including NVIDIA Corporation (NVDA.US), Cisco Systems, Inc.'s (CSCO.US) investment division, as well as long-time supporters of Musk's companies such as Valor Equity Partners, StepStone Group, Fidelity, Qatar Investment Authority, Abu Dhabi investment firm MGX, and Baron Capital Group. NVIDIA Corporation and Cisco Systems, Inc. are also important suppliers and strategic partners of xAI. In 2025, the valuation of global AI startups continued to rise, supporting large-scale financing to meet the demand for base model training and computing power. In October, OpenAI completed a $6.6 billion stock sale with a valuation of $500 billion; subsequently, the valuation of Anthropic was also raised to around $350 billion, with major funding coming from Microsoft Corporation (MSFT.US) and NVIDIA Corporation. xAI completed a merger with Musk-controlled social platform X in March of this year. Through this integration, xAI gained richer data resources and distribution channels, with its core product, Siasun Robot & Automation Grok, becoming an important part of the X platform. In terms of infrastructure development, Musk has focused xAI's data center layout on Memphis, Tennessee in the United States. The data centers in the region use gas power generation as their energy solution, raising concerns from some local residents and researchers about environmental impact. Despite facing regulatory reviews and environmental controversies, xAI's business progress continues to advance. The company recently reached a partnership with the U.S. Department of Defense, with its Grok product being included in the Department of Defense's AI agent platform. Furthermore, Grok is also a key technical support tool for prediction market platforms Polymarket and Kalshi.