TLDR
- xAI secured $15 billion in new funding, adding to a previous $10 billion round reported in September
- The combined fundraising brings the total series E round to $25 billion at a $200 billion company valuation
- Most of the capital will be used to purchase GPUs that power large language models
- The funding round reflects the ongoing investment boom in AI startups
- xAI joins other foundational AI companies in achieving high valuations through recent fundraising
Elon Musk’s artificial intelligence company xAI has closed a $15 billion funding round, sources familiar with the matter told CNBC. The new capital adds to a $10 billion round that was reported in September.
The combined funding brings xAI’s total series E round to $25 billion. The company is now valued at $200 billion according to sources.
The funds will primarily go toward purchasing graphic processing units. These GPUs are the hardware components that power large language models and AI systems.
xAI is the latest AI startup to raise substantial capital in recent months. The company launched in 2023 with Musk stating its goal was to understand the true nature of the universe.
The funding comes as artificial intelligence companies compete for resources and talent. Building and training large language models requires expensive computing infrastructure.
AI Startup Funding Boom Continues
AI startups have been raising money at a rapid pace throughout 2025. Many foundational AI companies have reached high valuations in their funding rounds.
The competition for GPUs has intensified as more companies develop AI models. These chips are essential for training and running AI systems at scale.
xAI operates in the same space as other AI companies building large language models. The company needs substantial computing power to develop and improve its technology.
Investment in Computing Infrastructure
The $15 billion in new funding will help xAI expand its GPU capacity. Access to computing resources has become a key factor in AI development.
Sources indicated that GPU procurement is a major focus for the capital deployment. The chips are manufactured by companies like Nvidia and are in high demand.
The funding round values xAI at $200 billion, placing it among the highest-valued private AI companies. This valuation reflects investor confidence in the AI sector.
xAI continues to build out its infrastructure as it develops AI technology. The company requires large-scale computing resources for its operations.
The series E round represents one of the largest funding rounds for an AI startup. It demonstrates the capital-intensive nature of developing foundational AI models.
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