Elon Musk’s AI company, xAI, is driving bold financial moves backed by a colossal $113 billion xAI valuation, as it seeks $5 billion in new debt and conducts a major share sale—signaling sky-high ambitions for the young venture recently merged with social media platform X.
Reports on Monday revealed that xAI is raising capital on two fronts: through debt managed by Morgan Stanley and a separate $300 million share sale. The debt offering, composed of loans and convertible notes, gives investors until June 17 to commit. Meanwhile, the share sale—focused on allowing employees to cash out existing equity—highlights investor appetite based on a steep implied price tag, giving xAI the kind of valuation typically reserved for mature tech giants.
For a company under two years old, this aggressive financial strategy marks a turning point. With X, formerly Twitter, now integrated into its corporate structure, xAI is positioned to tap into the platform’s massive dataset and global user base—likely a core part of its investment pitch. The marriage of generative AI and social media infrastructure gives xAI a unique edge in an increasingly competitive field dominated by OpenAI, Google DeepMind, and Anthropic.