Elon Musk’s AI startup xAI was reported to have raised $15 billion from investors, adding to a prior $10 billion round that valued the company at $200 billion. Musk later labeled the report “false” on his social media platform X. Sources cited that much of the funding would go toward GPUs supporting large language models.
xAI has drawn criticism for its rapid expansion, particularly its Memphis data centers powered by natural gas turbines, which local researchers say contribute to air quality concerns. The company’s AI products, including the Grok chatbotand Grokipedia online encyclopedia, have been criticized for spreading false and harmful content.
xAI acquired social platform X in March in an all-stock deal valued at $33 billion. The company also collaborates with Tesla, integrating Grok into vehicle infotainment systems and purchasing battery storage systems for data centers.
At Tesla’s recent shareholder meeting, a proposal for Tesla to invest in xAI did not receive enough votes to proceed. Tesla’s general counsel stated the company is “considering next steps” regarding potential xAI investment, amid ongoing scrutiny of Musk’s intertwined AI and automotive ventures.
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