Elon Musk's company xAI is preparing for a new funding round that could significantly increase its market valuation.
Preparation for New Funding Round
xAI is in talks to secure additional investments that could push its valuation to $200 billion. This will be the third major funding round in less than two months, with the company having already secured $10 billion through loans and cash investments in July and $300 million from a secondary stock offering.
Role of the PIF in the Deal
According to sources familiar with the process, the new fundraising aims for a valuation between $170 billion and $200 billion, although details are still being discussed. The Saudi sovereign wealth fund (PIF) is expected to play a significant role in the deal, as it indirectly holds a stake in xAI through Kingdom Holdings, which has invested $800 million.
Returning to Valuation Amid Trump Issues
The acquisition of X for $45 billion in March raised the combined company's valuation to $113 billion, which could rise to about $245 billion if the latest fundraising goes through. This development occurs amid Elon Musk's public feud with former President Donald Trump, which has sparked investor concerns; however, current valuations suggest a recovery in investor confidence.
xAI's plans for new investments highlight its rapid growth and attract attention from major funds, despite the associated risks.
