Overview

• xAI completed $10 billion in financing on July 1 by raising $5 billion through secured notes and term loans alongside a $5 billion strategic equity investment.
• Morgan Stanley said the debt tranche was oversubscribed by prominent global investors, reflecting strong demand despite xAI’s near-$1 billion monthly burn rate.
• xAI plans to channel the new funds into expanding its Grok AI platform, developing cutting-edge AI solutions, and scaling its US data center network.
• The startup is in advanced talks to secure about $20 billion more in equity, which could push its valuation above $120 billion.
• This funding surge positions xAI to accelerate its infrastructure build-out and intensify competition with rivals such as OpenAI.