Musk’s XAI raises $10 billion at $200 billion valuation

Elon Musk’s artificial intelligence startup xAI has raised new funding at a $200 billion valuation, according to a person familiar with the deal, making it one of the world’s most valuable startups. 

The over $10 billion round includes investment from Valor Capital, the Qatar Investment Authority and the Saudi Crown Prince via his Kingdom Holding Co., said the person, who asked not to be identified in order to discuss private business dealings. Bloomberg previously reported that xAI was raising money at a $200 billion valuation, and CNBC’s David Faber first reported that a deal had closed. 

Musk has been seeking funding for xAI as he tries to keep pace in a heated artificial intelligence race, which has seen major tech companies like OpenAI, Alphabet Inc., and Meta Platforms Inc. spend tens of billions on AI infrastructure and data centers. Musk, too, has spent aggressively in those areas, and Bloomberg reported earlier this year that xAI is losing $1 billion per month thanks to high infrastructure costs.