Elon Musk is seeking up to $12 billion in additional funding to accelerate the expansion of his artificial intelligence startup xAI, according to The Wall Street Journal on Tuesday, citing sources familiar with the matter. The report says the financing, led by Valor Equity Partners, would support the purchase of Nvidia chips to power a new data center for training Grok, xAI's AI chatbot.
The move follows a recent $10 billion raise and comes as Musk races to catch up with heavily backed rivals like OpenAI, Google, Microsoft and Meta. Unlike those firms, xAI lacks a major cloud partner and is building its own infrastructure. With projections showing xAI could spend $13 billion next year, Musk has leaned on internal support. For example, SpaceX recently invested $2 billion into xAI.
The media said Valor Equity Partners is now negotiating with lenders, but terms on loan size and repayment timelines remain unresolved.
