Elon Musk Denies Report That xAI Is Raising Capital

Elon Musk denied a report that his artificial intelligence startup, xAI, is raising money.

In a reply to a post on social platform X about a report that xAI was raising $10 billion at a $200 billion valuation, Musk said Friday (Sept. 19): “Fake news. xAI is not raising any capital right now.”

Fake news. xAI is not raising any capital right now.

— Elon Musk (@elonmusk) September 19, 2025

CNBC reported earlier Friday, citing unnamed sources, that the company was raising that amount at that valuation.

When xAI acquired Musk’s X March 30, Musk said the deal valued xAI at $80 billion and X at $33 billion ($45 billion minus $12 billion in debt).

“xAI and X’s futures are intertwined,” Musk said at the time. “Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”

It was reported in June that xAI launched a $5 billion debt sale and a $300 million share sale and that the proceeds of the debt sale would be used for general corporate purposes.

The share sale allowed staffers to sell their shares to new investors, and it valued xAI at $113 billion, according to the report.

Later in June, it was reported that xAI expected to spend $13 billion this year while bringing in revenues of $500 million.

The report said that the rate at which the company was raising money and spending it is common across the AI industry, due to the financial demands of the technology, which requires server farms and specialized chips.

It also said that xAI has projected that it will be profitable by 2027.

It was reported Sept. 10 that AI search startup Perplexity AI secured $200 million in new funding and was valued at $20 billion.

The report said Perplexity had raised money approximately once every two months over the past year, that its total funding exceeded $1 billion, and that it was valued at $14 billion in a funding round in March and at $18 billion in another one in July.

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