Overview

• xAI is closing a $4.3 billion equity round alongside a Morgan Stanley-led $5 billion debt sale to shore up its balance sheet
• The startup has spent most of its prior $14 billion in funding and held just $4 billion on hand as of March 31
• It is constructing the Colossus supercomputer with over 200,000 GPUs as part of a projected $13 billion spend this year
• xAI acquired X in an all-stock transaction to gain continuous social media data streams for training its AI models
• The company’s valuation climbed to $80 billion in the first quarter, and it forecasts profitability by 2027 on revenues rising from $500 million this year to $2 billion next year