Elon Musk's xAI in talks to raise $15 billion at $230 billion valuation

Elon Musk's AI company xAI is reportedly in advanced talks to secure $15 billion in new funding, according to the Wall Street Journal. The deal would value the company at $230 billion, a sharp increase from the $113 billion valuation it reported in March following its merger with X. Musk's financial adviser Jared Birchall shared the terms with investors on Tuesday evening. It's still unclear whether the new valuation applies before or after the additional investment.

Like other AI firms, xAI is burning through cash as it builds out its infrastructure. In June, the company raised $5 billion in equity and $5 billion in debt to construct a massive data center in Memphis. Musk's space company SpaceX contributed $2 billion to that round.