Elon Musk’s artificial intelligence startup xAI is seeking to raise $4.3 billion through a new equity investment round, in addition to a $5 billion debt financing effort launched earlier this year, according to information shared with investors.
The maker of the Grok chatbot has already raised approximately $14 billion in equity since its founding in 2023, but had only $4 billion remaining on its balance sheet as of March 31, the report said.
The push for new funding underscores xAI’s mounting capital needs as it expands efforts to compete with AI leaders such as OpenAI, Microsoft, and Alphabet. The company is reportedly tapping investors as it works to accelerate the development of its conversational AI tools and large language models.
xAI launched the $5 billion debt sale earlier this year, shortly after completing its initial rounds of equity fundraising.