Musk Refutes Claims of $10B Funding for xAI, Labels Reports as ‘Unfounded’
Elon Musk has vehemently refuted claims that his artificial intelligence startup, xAI, is in the process of raising $10 billion at a staggering $200 billion valuation. In a statement made on Friday, September 19, Musk dismissed these reports as “fake news“.
[tweet https://twitter.com/elonmusk/status/xxxxxxxxxxxx]
He further clarified, “xAI is not raising any capital at the moment“. This denial came on the heels of reports by CNBC and Bloomberg suggesting that the AI company was securing substantial funding from high-profile investors, including the Qatar Investment Authority and Prince Al Waleed bin Talal.
The alleged funding would have catapulted xAI into the league of the world’s most valuable AI startups, rivalling OpenAI’s $500 billion valuation.
Established in 2023 as an alternative to ChatGPT, xAI operates the Grok chatbot and has been steadily expanding its Memphis-based Colossus supercomputer facility. The company had previously raised $10 billion in combined debt and equity earlier in 2025. However, Musk’s recent public denial has cast a shadow of doubt over the latest funding claims.
Source: CNBC