Elon Musk’s xAI eyes $120 bln valuation in new funding talks, NYT reports

Published 09/05/2025, 05:50

Investing.com-- Elon Musk’s artificial intelligence startup xAI is in early talks to raise new funding at a potential valuation of up to $120 billion, up sharply from $80 billion just over a month ago, The New York Times (NYSE:NYT) reported on Thursday, citing people familiar with the discussions.

The potential fundraising round could bring in as much as $20 billion, though both the valuation and investment size remain subject to change, the report said.

The talks follow OpenAI’s March funding round, which valued the ChatGPT maker at $300 billion, amid renewed investor appetite for major AI players, according to the NYT report.

Tesla (NASDAQ:TSLA) CEO Musk’s xAI, launched in 2023, is closely linked to his social media platform X, which he said in March had been sold to xAI in an all-stock deal valuing xAI at $80 billion.

xAI’s chatbot Grok is trained on user data from X and is available exclusively on the platform.

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