Elon Musk’s xAI Raising Money Again—But Musk, as Usual, Denies It

CNBC and Bloomberg reported that Elon Musk’s xAI is raising $10 billion at a $200 billion valuation—just weeks after securing $10 billion in debt and equity at a $120 billion valuation, Alexei Oreskovic reported for Fortune Tech.

xAI had a chaotic summer, marked by rapid hiring and departures, ambitious expansion plans, and controversy over chatbot missteps, including racist outputs. (Photo: Gage Skidmore X) 

Musk quickly blasted the reports as “fake,” posting on X: “xAI is not raising any capital right now.”

Bloomberg, however, cited sources saying Qatar Investment Authority, Valor Capital, and Prince Al Waleed bin Talal’s Kingdom Holding are participating in the round. One source added that xAI is seeking an additional $3.5 billion in debt financing for data center expansion.

Meanwhile, The New York Times published an in-depth report on xAI’s chaotic summer, marked by rapid hiring and departures, ambitious expansion plans, and controversy over chatbot missteps, including racist outputs.