Elon Musk’s artificial intelligence startup, xAI, has raised $10 billion in a combination of debt and equity, according to a statement released by Morgan Stanley on Monday.
The financial institution, which advised on the deal, said $5 billion came from debt financing and another $5 billion was secured through a strategic equity round. The arrangement is intended to reduce xAI’s overall cost of capital and provide broader access to funding sources.
The proceeds will be used to accelerate the company’s development of advanced AI technologies, including its signature chatbot Grok and the construction of what’s being described as one of the world’s largest AI data centers.
This latest raise follows a $6 billion round closed in December, which drew investment from major names such as Andreessen Horowitz, BlackRock, Fidelity, Sequoia Capital, and Nvidia, among others. With the new funding, xAI has now raised approximately $17 billion to date.
Founded in 2023, xAI is seen as Musk’s direct challenge to OpenAI — the organization he co-founded but later distanced himself from — as well as to Google DeepMind and Anthropic. Musk has positioned Grok, which is integrated into X (formerly Twitter), as an “uncensored” alternative to mainstream AI chatbots.
xAI did not respond to requests for comment as of press time.
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