Ilon Musk's xAI has raised a record $10bn to develop Grok and data centres

Startup xAI, founded by Ilon Musk, has completed two major deals - $5bn in debt financing and $5bn in strategic investments - according to Morgan Stanley. The funds received will be used to develop AI solutions, scale data centres and develop the chat platform Grok.

Here's What We Know

Founded in 2023 by Musk, xAI issued new debt and raised a strategic investment round of $5bn each. The debt financing included secured bonds and credit lines, supply far exceeded demand, and the round was attended by large institutional investors .

The funds will be used to expand its infrastructure - including its largest supercomputer, Colossus - and develop its Grok AI platform, which claims to compete with OpenAI and other market leaders.

On top of that, xAI is in talks for another $20bn to $75-200bn valuation of the company. The latest round brought the amount raised to around $17bn.

Source: @MorganStanley, Reuters