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15h ago

xAI Eyes $9.3 Billion Fundraise to Sustain AI Build-Out

Revised debt terms accompany efforts to secure $9.3 billion of financing to sustain xAI’s rapid AI development

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xAI logo is seen in this illustration taken, February 16, 2025. REUTERS/Dado Ruvic/Illustration/FIle photo
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Overview

  • xAI is in advanced talks to raise $4.3 billion in equity financing on top of a $5 billion debt package for a total of $9.3 billion.
  • Investor materials show the company spent most of its $14 billion equity haul from 2023, leaving roughly $4 billion on its balance sheet at the end of the first quarter.
  • The AI lab is burning approximately $1 billion each month as it builds its Grok chatbot and a 200,000-GPU supercomputer.
  • To entice debt investors, xAI has capped secured borrowing and made it harder to shift assets while pursuing a $650 million rebate from a hardware supplier.
  • Despite its high cash burn, xAI’s valuation climbed from $51 billion at the end of 2024 to $80 billion in Q1 2025 and the company forecasts profitability by 2027.