Elon Musk’s xAI Valuation Sparks New Growth Rumors After Investor Call Reveals $1B Target
Elon Musk’s xAI valuation is making headlines again as fresh reports reveal the tech mogul is working behind the scenes to secure a “proper valuation” for his artificial intelligence startup, xAI.
According to sources cited by CNBC, Elon Musk was present during a recent xAI investor call, where discussions hinted at a potential $1 billion run rate for the company — a figure sparking industry speculation about an imminent capital raise. While no formal funding round has been confirmed, the focus on Elon Musk’s xAI valuation suggests big moves are on the horizon.
This latest push comes just months after reports indicated xAI was eyeing a $6 billion funding round at a valuation of $50 billion, with major interest from Middle Eastern sovereign wealth funds and global tech investors. The capital, insiders claim, would be used for scaling AI infrastructure, including the acquisition of 100,000 Nvidia GPUs — a key piece in the race to dominate generative AI.
Elon Musk’s xAI valuation ambitions grew even more intriguing following the recent all-stock merger between xAI and Musk’s social media platform, X (formerly Twitter). Reports suggest Musk valued xAI at $80 billion and X at $33 billion at the time of the deal.
Founded in July 2023, xAI has already entered the AI race with its chatbot Grok, positioned as a direct competitor to OpenAI’s ChatGPT and Anthropic’s Claude. Elon Musk’s xAI valuation strategy appears designed to cement the startup’s place in the highly competitive AI landscape, especially given Grok’s claim of real-time internet knowledge and ultra-fast training cycles.
Beyond the investor call, xAI’s ambitions are further underscored by its role in a massive AI infrastructure partnership. In March, xAI joined forces with Nvidia, BlackRock, Microsoft, and Abu Dhabi’s MGX to form a $30 billion alliance aiming to raise up to $100 billion for next-generation AI data centers.
Elon Musk’s xAI valuation plans arrive amid a challenging year for another of his ventures, Tesla, which has seen a sharp 40% drop in its stock price in 2025. Analysts are now debating whether Musk can juggle his growing AI empire alongside his other businesses.
For now, all eyes are on the next move, as Elon Musk’s xAI valuation strategy points to aggressive growth and possibly a funding announcement in the near future.
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