Overview
- The Wall Street Journal reports xAI is negotiating a $15 billion equity round at a $230 billion valuation, with the deal not closed and the basis of the valuation not specified as pre- or post-money.
- Musk’s wealth manager Jared Birchall outlined the fundraising terms to potential investors on Tuesday night, according to the report.
- An investor-call recording reviewed by Forbes indicates xAI has roughly $10 billion in cash, targets turning cash-flow positive by 2028, and could see demand exceeding the stated raise, though xAI has not confirmed these claims.
- Forbes also reports a Valor Equity Partners vehicle plans to buy and lease data-center compute to xAI, with $7.5 billion targeted in equity plus additional debt and a $2 billion commitment from Nvidia.
- New funds are expected to back large-scale infrastructure including the Colossus supercomputer project in Memphis, following June’s $10 billion mix of equity and debt that included about $2 billion from SpaceX, while any Tesla participation remains unresolved.