Elon Musk's xAI Raises USD 10 Bn to Power AI Ambitions The funding aims to boost xAI's AI development, including large-scale data centers and its AI platform, Grok.
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Elon Musk's artificial intelligence company, xAI, has raised USD 10 billion in a mix of debt and equity funding, according to Morgan Stanley. The investment bank, which led the financing, announced the deal on Tuesday.
Of the total amount, USD 5 billion came through secured debt, while the remaining USD 5 billion was raised via a strategic equity round. The funding aims to boost xAI's AI development, including large-scale data centers and its AI platform, Grok.
"Morgan Stanley is pleased to announce the successful completion of a USD 5 billion financing of Secured Notes and Term Loans for xAI, a leading innovator in artificial intelligence technology," the company said. "This transaction, which was oversubscribed and included prominent global debt investors, reflects confidence in xAI's vision to accelerate scientific discovery and advance humanity's collective understanding of the universe."
This round follows xAI's USD 6 billion raise in December 2024, which included investors such as Andreessen Horowitz, BlackRock, Fidelity, Sequoia Capital, NVIDIA, and AMD.
The funding comes as the AI industry sees a surge in investor interest. In March 2025, OpenAI raised USD 40 billion at a USD 300 billion valuation in a round led by Microsoft and SoftBank. Anthropic also secured USD 3.5 billion at a USD 61.5 billion valuation, backed by Lightspeed Venture Partners and others.
With this funding, xAI is well-positioned to compete in the growing AI race and continue developing tools to push the boundaries of technology and science.
