Musk’s xAI in talks to raise $4.3B in equity funding, Bloomberg reports

Elon Musk’s artificial intelligence startup xAI is in talks to raise $4.3B through an equity investment on top of the $5B it has recently been trying to borrow from debt investors, according to information the company shared with investors who asked not to be identified because it is private, Bloomberg’s Carmen Arroyo and Jill R Shah report. Musk’s company, which is responsible for the AI chatbot Grok, needs the new money, in part, because it has already spent most of what it previously raised, the materials shared with investors indicate. Between its founding in 2023 and when the debt sale was launched this year, xAI raised $14B via equity fundraising, according to the materials. But as of March 31, only $4B of that was left on the company’s balance sheet, the information showed.