Post by : Naveen Mittal

Elon Musk Denies xAI Is Raising $10 Billion Amid Funding Rumors

Elon Musk has dismissed recent reports suggesting that his artificial intelligence startup, xAI, is seeking $10 billion in new funding. In a statement on X (formerly Twitter), Musk labeled the CNBC report as "fake news," asserting that xAI is not currently raising capital.

The CNBC article, published on September 19, 2025, claimed that xAI was pursuing $10 billion in funding at a post-money valuation of $200 billion. The report indicated that the funds would be allocated towards building data centers equipped with Nvidia and AMD graphics processing units, essential for developing next-generation AI models. Additionally, the company was said to be hiring top-tier talent to bolster its capabilities.

However, Musk's swift rebuttal casts doubt on the accuracy of these claims. The reported valuation would represent a significant increase from xAI's previous valuation of $75 billion in July 2025, according to data from PitchBook.

Despite Musk's denial, xAI has been actively expanding its infrastructure. The company is constructing a large AI computing cluster in Memphis, Tennessee, known as Colossus, which is touted as the largest in the world. This initiative aims to enhance xAI's computational capacity to train advanced AI models and compete with industry leaders like OpenAI's ChatGPT and Anthropic's Claude.

Investor interest in AI startups remains robust, with companies like Anthropic recently raising $13 billion at a $183 billion valuation. However, the competitive landscape and the capital-intensive nature of AI development continue to pose challenges for emerging firms.

As of now, xAI has not provided further details regarding its funding strategy or future plans. The company's next steps will likely depend on its ability to secure resources and navigate the evolving AI industry landscape.