Catenaa, Thursday, November 13, 2025- Elon Musk AI company xAI has raised $15 billion from investors, adding the value of the startup to $200 billion.
The funding adds another $5 billion to the $10 billion round CNBC reported on in September, which valued the startup at $200 billion, and a lot of the money will fund graphic processing units that underpin large language models.
AI startups have reached sky-high valuations in recent months as they raise massive amounts of capital to power seemingly endless demand for foundational models.
In September, AI startup Anthropic closed a $13 billion funding round that roughly tripled its valuation from March.
Sam Altman’s OpenAI in October closed a $6.6 billion share sale at a $500 billion valuation. Last month, Reuters reported that the ChatGPT maker was prepping for an IPO that could value it at $1 trillion.
Last week, Tesla shareholders voted to approve Musk’s massive pay package worth nearly $1 trillion, and voted on a proposal for the company to invest in xAI.
Brandon Ehrhart, general counsel at Tesla, said there were more votes for than against, but noted the abstentions and said the company is considering next steps on the issue.
Investor enthusiasm in artificial intelligence firms has remained strong even as fears of an AI bubble emerge due to sky-high valuations and massive spending plans.
XAI is also investing heavily to expand its own infrastructure by buying property in Memphis to build out its planned Colossus supercomputer.
