xAI reportedly eyes fresh funding at $170-$200 billion valuation; Musk denies

xAI reportedly eyes fresh funding at $170-$200 billion valuation; Musk denies

12 Jul 2025, 12:19 PM

The Saudi Arabian sovereign wealth fund, the Public Investment Fund, is expected to pick a significant stake in the round.

Team Head&Tale

Share the story on

Elon Musk's artificial intelligence venture xAI is reportedly in preliminary discussions with investors for a new funding round that would place the company's valuation in the $170-$200 billion range.

The Saudi Arabian sovereign wealth fund, the Public Investment Fund, is expected to pick a significant stake in the round, according to a Financial Times report.

PIF already maintains exposure to xAI through its investment in Kingdom Holdings Company, which deployed $800 million into the AI firm.

However, Musk dismissed the reports on his X platform, stating that xAI "is not seeking funding right now" and has "plenty of capital."

The potential raise would mark another milestone for the AI startup, which has rapidly scaled its operations since launching in July 2023.

Morgan Stanley said that xAI raised a $5 billion debt facility and separate $5 billion strategic equity investment in June, as the company expands its computational infrastructure.

xAI's valuation has surged from $80 billion following its acquisition of X. The transaction valued X at $33 billion.

The AI company positions itself as an alternative to OpenAI's ChatGPT service. OpenAI is also planning to raise up to $40 billion at a $300 billion valuation.

The potential funding round reflects the substantial capital demands facing AI companies as they compete to develop and deploy advanced language models and supporting infrastructure.

Who Reads Us

“I enjoy reading The Head and Tale for their coverage on the Fintech landscape. The reporting is incisive and honest, and it demonstrates a sharp understanding of the industry and the issues that concern it. I'd like to extend my best wishes to Arti for her continued success.”

Rahul Chari Co-Founder And CTO, PhonePe

“Well-researched, informative and analysis based reporting makes an interesting read. 'The Head and Tale' news portal has been demonstrating this quite well covering fintech and emerging tech sectors. Their timely updates, exclusive stories and different perspectives on these sectors help me stay informed. Kudos to Arti Singh for pursuing her passion and best wishes to the team.”

Rishi Gupta MD & CEO, Fino Payments Bank

“The Head and Tale stands out for its deep industry knowledge and impressive network of sources. I especially appreciate that the reporting remains independent, rarely resorting to paid puff pieces, making it a publication I can genuinely trust. Having followed Arti’s work for years, I’ve come to rely on The Head and Tale for its unparalleled insight and truly independent coverage. Arti’s long-standing presence in the sector means her reporting is always informed, with access few can match.”

Lizzie Chapman Co-founder, ZestMoney

“What I really appreciate about The Head and Tale is that it doesn’t just report the news, it interprets it. The stories are well-researched, comprehensive, and bold. Arti brings a fearless lens to reporting, often asking the uncomfortable but necessary questions. She makes you pause, reflect, and rethink what it all means for the payments and fintech ecosystem. It’s rare to find journalism that’s this sharp, timely, and relevant to the work we do every day.”

Mohit Bedi Co-founder, Kiwi

“I’ve always valued journalism that goes beyond surface-level headlines. The Head and Tale does exactly that - it connects the dots, asks the tough questions, and brings clarity to the shifts shaping our evolving industry. I’ve even encouraged my team members to subscribe, because staying informed through credible, deeply reported stories is as important as building products. For me, The Head and Tale has become part of essential reading.”