Tesla (TSLA.US) CEO Musk's XAI recently raised $20 billion, and the company's valuation may reach 230 billion US dollars

The Zhitong Finance App learned that on Tuesday, xAI, an artificial intelligence company owned by Tesla (TSLA.US) CEO Musk, announced that it has raised a total of 20 billion US dollars in the latest round of financing, which is significantly higher than the 15 billion US dollars previously generally expected by the market.

The media reported in November last year that this round of financing may bring the overall valuation of xAI to about 230 billion US dollars. After earlier media reports claimed that the financing scale was 15 billion US dollars, Musk publicly denied it on his social networking platform X, saying that the relevant statement was “untrue.”

This round of financing attracted the participation of a number of heavyweight investment institutions, including NVDA.US (NVDA.US) and Cisco (CSCO.US) investment divisions, as well as Valor Equity Partners, StepStone Group, Fidelity, Qatar Investment Authority (Qatar Investment Authority), Abu Dhabi investment institutions MGX, and Baron Capital Group, which have long supported Musk's companies. Nvidia and Cisco are also important suppliers and strategic partners for xAI.

In 2025, the valuation of global AI startups will continue to rise, with large-scale financing to support basic model training and computing power requirements. In October, OpenAI completed the sale of shares of 6.6 billion US dollars, with a valuation of 500 billion US dollars; subsequently, Anthropic's valuation was also raised to about 350 billion US dollars, mainly from Microsoft (MSFT.US) and Nvidia.

xAI completed a merger with Musk's controlled social networking platform X in March of this year. Through integration, xAI has obtained richer data resources and distribution channels, and its core product, the chatbot Grok, has also become an important part of the X platform.

In terms of infrastructure construction, Musk is focusing on xAI's data center layout in Memphis, Tennessee, USA. The relevant data center uses gas power generation as an energy solution, drawing the attention of some local residents and researchers about the environmental impact.

Despite facing regulatory scrutiny and environmental disputes, xAI's commercial progress continues to advance. The company recently reached a cooperation with the US Department of Defense, and its Grok products were incorporated into the US Department of Defense's AI proxy platform. Additionally, Grok is one of the main technical support tools for predictive market platforms Polymarket and Kalshi.