July 2, 2025 – According to a CNBC post on July 1, Elon Musk has secured a whopping 10billiontofuelhisAIambitionsandintensifythecompetitionwithOpenAI.Thisfundingcomesintheformofa5 billion debt and $5 billion equity combination.
Morgan Stanley revealed on the same day that xAI, the AI company led by Musk, has raised a total of 10billionthroughamixofdebtandequity.Specifically,5 billion was obtained via secured notes and term loans, while the remaining $5 billion was sourced from strategic equity investments.
This significant injection of capital will give xAI a major boost. It will be used to build infrastructure and further develop its Grok AI chatbot. The move is aimed at taking on not only OpenAI, which is considered a fierce rival, but also a host of other competitors, including Anthropic, which is backed by Amazon.
Back in May this year, Musk disclosed that xAI had installed 200,000 GPUs at its Colossus facility in Memphis, Tennessee, in the United States. These GPUs are being used for AI training purposes.
At that time, Musk also stated that his company would keep purchasing chips from semiconductor giants Nvidia and AMD. Moreover, xAI has plans to build a new facility outside of Memphis that will house 1 million GPUs.
Regarding the newly raised funds, Morgan Stanley said that the proceeds would support xAI in its continuous development of cutting-edge AI solutions. This includes building what is expected to be the world’s largest data center and enhancing its flagship platform, Grok.
