Overview

• xAI closed a $5 billion debt financing package made up of secured notes and term loans that was oversubscribed by major global investors.
• The company also completed a separate $5 billion strategic equity investment allocated to its Grok chatbot platform and AI data center buildout.
• xAI is negotiating an additional $20 billion equity raise that could push its valuation beyond $120 billion, with some investors eyeing up to $200 billion.
• The latest capital injection is aimed at offsetting a burn rate of about $1 billion per month as xAI scales its supercomputing and AI development efforts.
• Proceeds will support the rollout of new data centers and accelerated development of AI solutions to strengthen xAI’s position in the competitive AI industry.