Elon Musk’s AI company, xAI, recently secured an impressive $10 billion in fresh investments. This influx of funds significantly strengthens its position as it vies for dominance alongside industry giants such as OpenAI. The financing arrives at a time when Musk is facing criticism from Donald Trump, introducing a political layer to an already intense tech rivalry.
The situation combines massive financial resources, political strain, and Elon Musk’s efforts to redefine the future of artificial intelligence.
Here’s a closer look at what’s really going on.
$10 Billion Secured – Backed by Morgan Stanley
As reported by CNBC, the artificial intelligence company xAI has obtained a total of $10 billion in funding – this includes $5 billion through secured debt and an additional $5 billion via strategic equity investments. This substantial fundraising round was announced by Morgan Stanley, who are supporting xAI’s ambitious growth strategies.
The money will be allocated for constructing the AI framework of xAI, encompassing their Colossus supercomputer situated in Memphis as well as their Grok AI platform, a response from Musk to ChatGPT developed by OpenAI.
According to Morgan Stanley’s statement, the funds obtained will be used to further advance xAI’s innovation in artificial intelligence technologies, particularly their massive data center and the prominent Grok platform.
Trump Targets Musk Over Govt Support
In the hours preceding the funding’s media coverage, I found myself at the receiving end of a public broadside from Elon Musk. He was allegedly accused by me, suggesting he excessively relies on government subsidies for his operations.
Trump posted on Truth Social suggesting that if we halt rocket launches, satellite deployments, and electric car production, our country could save a significant amount of money. He also hinted that Dogecoin (DOGE) might want to consider the potential benefits of such a move.
Mentioning DOGE could imply that an investigation or regulatory scrutiny might be looming over Elon Musk’s businesses.
Musk didn’t hold back, replying: “I am literally saying CUT IT ALL. Now.”
The timing of the comments has drawn attention, especially as Musk ramps up funding and expansion.
Grok Coming to Telegram
In a new development, xAI is expanding its presence. The firm has just collaborated with Telegram, making its Grok AI assistant accessible to Telegram’s user base.
As a crypto investor, I’m thrilled about the potential advantages that come with Elon Musk’s ownership of X. This partnership grants xAI an unparalleled access to a rich trove of real-world data, empowering them to train and validate their models more effectively than most AI startups in the market.
Next Round Could Push Valuation to $200 Billion
It’s being speculated that xAI might aim to secure an additional $20 billion, potentially elevating its worth beyond $120 billion and perhaps reaching as high as $200 billion.
It’s quite remarkable for a startup like xAI, which began operations in March 2023, to already be considered one of the world’s most valuable AI companies at such an early stage. This pace surpasses what many predicted, isn’t it?
We’ll keep tabs on all things Musk and let you know. Right here on Coinpedia!
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2025-07-01 17:46