Elon Musk said on Friday that xAI is not raising money right now. He posted on X that a CNBC story about a new round was “fake news.” The network had earlier reported that xAI was working on a $10 billion raise at a $200 billion valuation.
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According to CNBC, the funding would support new data centers filled with chips from Nvidia (NVDA) and Advanced Micro Devices (AMD). It also said the money would help pay for top talent. The report suggested this round would more than double xAI’s value since July, when PitchBook data placed it at $75 billion. CNBC added that Musk had already raised $10 billion in debt and equity weeks earlier at about $150 billion.
The Bigger Picture in AI Valuations
Although Musk rejected the report, the debate reflects the pace of investment in artificial intelligence. Startups are scaling fast, and investor demand has remained strong. Anthropic said this month it raised $13 billion at a $183 billion valuation. OpenAI is in early talks about a stock sale that could value the firm at about $500 billion. ByteDance is set for a new buyback that places the company above $330 billion.
xAI is also expanding its infrastructure. The company is building a supercomputer cluster in Memphis called Colossus, which Musk has described as the largest in the world. He has also said he plans to buy 1 million chips. Musk founded xAI in 2023 as a rival to OpenAI and merged it with X earlier this year in an all-stock deal.
For now, the exact valuation of xAI remains unclear. Yet the competition among leading AI players highlights how capital, chips, and talent remain the key drivers of growth in the sector.
Is Tesla a Buy, Sell, or Hold?
Turning to Musk’s publicly traded company, Tesla (TSLA), the stock is currently rated a Hold, based on 34 analyst ratings issued over the past three months.. The average price target for TSLA stock is $321.86, implying a 24.46% downside from the current price.
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