Elon Musk’s artificial intelligence company xAI has raised a total of $10 billion in new funding announced by Morgan Stanley. This funding was divided into debt and equity investments. $5 billion was provided through secured bonds and term loans, while the remaining $5 billion was provided as a strategic equity investment. The company will use these resources to develop its artificial intelligence platform and infrastructure called Grok.

xAI is challenging OpenAI

xAI has already placed 200,000 GPUs in its Colossus facility in Tennessee. Elon Musk stated in May that this supercomputer played an important role in Grok’s training. He also announced that they plan to build a new facility with a capacity of 1 million GPUs outside of Memphis. This goal reveals the aim of creating a high-capacity infrastructure in the field of artificial intelligence.

The company introduced the Grok 3 model in February and continues to bring regular updates to the platform. In March, xAI acquired Musk-owned social media platform X (formerly Twitter) for a valuation of $33 billion.

Grok AI was integrated into this platform. During the same period, xAI’s total valuation reached $80 billion. The impact of the new investment round on the company’s valuation has not yet been announced.

These developments show that xAI is competing strongly with OpenAI, Anthropic and other major players in the AI ​​competition. OpenAI increased its market value to $300 billion with the $40 billion funding round it closed in March. Anthropic reached a valuation of $61.5 billion with the investments it received during the same period.

While xAI is growing the Grok platform with newly acquired resources, it is preparing to play a critical role in the worldwide AI infrastructure. Musk’s strategy in AI and social media integration continues to have an impact on the future of the sector.