Elon Musk’s artificial-intelligence startup, xAI, has told investors it raised $5 billion in a funding round valuing it at $50 billion—more than twice what it was valued at several months ago.
Qatar’s sovereign-wealth fund, Qatar Investment Authority, and investment firms Valor Equity Partners, Sequoia Capital and Andreessen Horowitz are expected to participate in the round, according to people familiar with the matter. The financing brings the total amount xAI has raised to $11 billion this year.
xAI was previously raising funds at a $40 billion valuation, before factoring in the new cash, The Wall Street Journal reported. Over the past few weeks, xAI raised that figure by $5 billion in negotiations with investors. The infusion of new cash brings its total post-investment value to $50 billion.
xAI was valued at $24 billion when it raised $6 billion in the spring.
Investor interest in Musk’s businesses, including xAI and SpaceX, has increased since Donald Trump won the presidential election. Musk spent hundreds of millions of dollars to boost Trump’s campaign and led rallies on behalf of the Republican. He has worked on the early stages of Trump’s transition back to the White House and is co-leading an effort to cut government spending.