Musk’s xAI reportedly seeking $10B in a new funding round
John: Hey there, folks! I’m John, a veteran writer for Blockchain Bulletin, where I break down the latest in Web3, crypto, and blockchain in simple, approachable terms. Today, we’re diving into reports about Elon Musk’s xAI seeking a massive $10 billion funding round—tying it into how AI intersects with crypto and what it means for the space. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi everyone, I’m Lila, John’s curious assistant always eager to learn more about this exciting world. John, for beginners like me, what’s the big deal with xAI and this funding news—does it have anything to do with crypto?
Background on xAI
John: Great question, Lila. xAI is Elon Musk’s artificial intelligence startup, launched in 2023 to “understand the true nature of the universe” through advanced AI tech. In the past, it raised $6 billion in May 2024, valuing the company at $24 billion, according to reports from CryptoSlate. This helped build out tools like the Grok chatbot, which rivals models from companies like OpenAI.
Lila: Grok? That sounds like something from a sci-fi movie. Can you explain what it is in plain English?
John: Absolutely—think of Grok as a super-smart AI assistant, inspired by the Hitchhiker’s Guide to the Galaxy, that answers questions with a bit of humor and rebellion. As of now, it’s integrated into platforms like X (formerly Twitter), and xAI has been scaling up with massive GPU clusters for training. For example, in July 2025, they completed a $10 billion debt and equity raise to boost infrastructure, per CNBC reports.
The Reported Funding Round
Lila: So, what’s this new $10 billion buzz about? Is it happening right now?
John: Reports from September 19, 2025, via CNBC and CryptoSlate suggest xAI is seeking another $10 billion at a whopping $200 billion valuation. The funds would reportedly go toward building data centers packed with Nvidia and AMD GPUs for AI development. This comes just weeks after their July 2025 raise, which was pegged at around $150 billion valuation—showing how fast AI valuations are skyrocketing in the current landscape.
Lila: GPUs? Like graphics cards for gaming? How do they fit into AI?
John: Spot on, but in AI, GPUs are like the heavy lifters for crunching massive data sets—imagine them as the engines powering a rocket ship of computations. Sources like Forbes noted on September 19, 2025, that this could position xAI above rivals like Anthropic ($183 billion valuation) but below OpenAI ($500 billion).
Musk’s Response and Latest Updates
Lila: But is this funding actually confirmed? I’ve heard Musk can be pretty vocal on X.
John: You’re right—on September 19, 2025, Elon Musk posted on X denying the reports, calling them “fake news” and stating xAI is not raising capital right now. This adds a layer of uncertainty, as posts on X can reflect real-time sentiment but aren’t always conclusive. Based on verified sources like Cointelegraph from July 2025, xAI has been focusing on tech builds, like their Colossus supercluster with over 200,000 GPUs operational as of that time.
Lila: Wow, that sounds huge. So, even without new funds, they’re pushing forward?
John: Exactly. Looking back, Musk mentioned in a July 2025 X post about contracting 24,000 Nvidia H100 GPUs for Grok 2 training, with plans for a 100,000 H100 system. As of September 2025, they’ve activated Colossus II, a gigawatt-scale AI training cluster, according to Musk’s updates on X—highlighting rapid progress in AI infrastructure.
Connection to Crypto and Web3
Lila: Okay, but how does this tie into crypto? Musk is big on Dogecoin, right?
John: Good link! While xAI isn’t directly a crypto project, AI and blockchain are increasingly intertwined—think AI-powered trading bots or decentralized AI on Web3 platforms. Musk’s involvement sparks interest in the crypto community, especially with his past endorsements of Dogecoin and mentions of AI in blockchain contexts. For instance, reports from Cointelegraph on July 1, 2025, noted xAI’s funding amid Musk’s feud with Trump, which indirectly stirred crypto markets due to Musk’s influence.
Lila: That makes sense. Are there concrete examples of AI in crypto?
John: Sure—projects like Fetch.ai use AI for decentralized machine learning, and SingularityNET aims to create an AI marketplace on blockchain. xAI’s Grok could potentially integrate with Web3 for things like smart contract analysis, though that’s future potential based on current trends. (And hey, if AI ever predicts crypto prices perfectly, we’d all be millionaires— but remember, no financial advice here!)
Key Technological Developments
Lila: What about the tech side? What’s xAI building that’s so exciting?
John: In the present, xAI is all about scaling AI models. As of September 2025, they’ve got Colossus clusters with hundreds of thousands of GPUs, including Nvidia GB200s, for training next-gen AI like Grok. Musk shared on X in July 2025 about 230,000 GPUs operational, with more coming online soon. This positions them to challenge leaders in AI development.
Lila: Impressive numbers! Any tips for readers interested in AI-crypto crossovers?
John: Here’s a quick list of ways to explore:
- Check out decentralized AI platforms like Ocean Protocol for data sharing.
- Follow Musk’s X updates for real-time xAI insights— but verify with sources like CoinDesk.
- Experiment with AI tools like Grok on X to see blockchain integrations in action.
- Read regulatory news on how AI might affect crypto laws, such as EU AI Act implications from 2024.
Risks and Considerations
Lila: Sounds promising, but are there downsides or risks with all this AI funding hype?
John: Fair point—risks include overvaluation bubbles in AI, similar to past crypto booms and busts. If reports are accurate, a $200 billion valuation by September 2025 is massive, but Musk’s denial highlights how quickly news can shift. On the safeguards side, always cross-check with trusted sources like regulatory bodies; for example, the FTC monitors AI ethics, which could impact xAI’s growth.
Lila: And for crypto folks, any specific watch-outs?
John: Absolutely—AI in crypto could lead to scams like fake trading bots, so stick to verified projects. In the past, hype around Musk’s tweets caused Dogecoin pumps, but as of now, focus on fundamentals over speculation.
Looking Ahead
Lila: So, what’s next for xAI and its crypto connections?
John: Looking ahead, if funding proceeds despite denials, we might see xAI expand into AI-blockchain hybrids by 2026, like enhanced DeFi tools. Musk hinted at future clusters with 300,000 Nvidia B200s in a 2024 X post, potentially revolutionizing compute power. Keep an eye on official announcements for the real scoop.
John: Wrapping this up, it’s fascinating how xAI’s moves could ripple into Web3, blending AI smarts with blockchain innovation—always exciting times ahead. Stay curious and informed, readers. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Thanks, John—key takeaway: AI like xAI is evolving fast, and its crypto ties could open new doors, but verify facts and tread carefully!
This article was created using the original article below and verified real-time sources:
- Musk’s xAI reportedly seeking $10B in a new funding round
- Elon Musk’s xAI raising $10 billion at $200 billion valuation: sources
- Elon Musk’s XAI Could Be Valued At $200 Billion After $10 Billion Funding Round, Report Says
- Elon Musk’s xAI raises $10B as Trump threatens to unleash DOGE on him