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Jun 18, 2025
Musk's xAI approaches $9.3 billion funding amid Trump dispute
Elon Musk's AI startup, xAI, is about to raise a huge $9.3 billion—split between debt and equity—even though a public spat with Donald Trump recently made headlines and shook up investor confidence.
TL;DR
Launched in 2023, xAI is known for its chatbot Grok.
Earlier this year, it merged with Musk's social platform X (formerly Twitter), creating a combined company now valued at $113 billion.
Thanks to the merger, xAI can tap into X's resources to build out its AI tech.
xAI targets $500 million in revenue for 2025
xAI expects to spend $13 billion in 2025 while targeting $500 million in revenue for the same year, though it's bracing for some losses along the way.
Despite the high costs of building advanced AI, heavyweight investors like TPG and Angelo Gordon are still backing Musk's vision.