Elon Musk’s xAI seeks $113bn valuation in $300mn share sale
Elon Musk’s artificial intelligence venture, xAI, is making headlines with a significant $300 million secondary share sale, positioning the company at a staggering $113 billion valuation. This move underscores Musk’s renewed focus on his business empire, particularly in the competitive AI sector.Financial Times
A Strategic Merger: xAI and X
In March 2025, Musk orchestrated a merger between xAI and his social media platform, X (formerly Twitter). This consolidation valued xAI at $80 billion and X at $33 billion, combining to form the current $113 billion valuation. The merger aims to leverage synergies between AI development and social media data, enhancing model training and distribution capabilities.Financial Times
Empowering Employees and Attracting Investors
The current share sale allows xAI employees to liquidate shares, providing them with financial benefits and attracting new investors. This tender offer is expected to precede a larger funding round, introducing new equity to external investors and further bolstering xAI’s financial foundation.Financial Times
Innovations and Partnerships
Since its inception in 2023, xAI has launched notable projects like the Grok chatbot and the Colossus supercomputer cluster. These initiatives demonstrate xAI’s commitment to advancing AI technology. Additionally, partnerships with tech giants such as Microsoft and Telegram have expanded xAI’s reach, integrating its models into cloud services and messaging platforms.Financial Times
Musk’s Renewed Business Focus
After stepping back from his role in the Department of Government Efficiency, Musk has redirected his attention to his business ventures, including Tesla, Neuralink, and xAI. Neuralink recently secured $600 million in funding, achieving a $9 billion valuation, indicating Musk’s broader strategy to integrate AI across his enterprises.Financial Times
Conclusion
Elon Musk’s strategic maneuvers with xAI reflect a calculated effort to dominate the AI landscape. By merging with X, initiating significant funding rounds, and fostering key partnerships, xAI is poised to be a formidable player in artificial intelligence. Musk’s vision of integrating AI across his business ventures underscores a future where technology and innovation drive growth and transformation.
