Share on Linkedin Artificial intelligence company xAI, founded by tech entrepreneur Elon Musk, has secured a total of $10 billion in new funding, a move that significantly bolsters its ambition to lead the next wave of AI innovation. The funding includes $5 billion in secured notes and term loans arranged by Morgan Stanley and an additional $5 billion in strategic equity investment obtained separately. Morgan Stanley, which announced the deal, said the debt offering was oversubscribed, drawing interest from a consortium of prominent global debt investors. RelatedStories Last year, the company raised $6 billion in a Series B round, bringing its valuation to around $24 billion at the time. The latest $10 billion in funding could signal even loftier ambitions, as xAI competes with well-funded rivals and doubles down on infrastructure investment. The Grok platform—integrated with Musk’s X (formerly Twitter)—is being positioned as a real-time, conversational AI with a unique blend of personality and access to social media data, potentially setting it apart in a crowded generative AI market. What you should know XAI’s latest funding comes as the competition in the AI space gets stiffer with each player striving to be the best. While xAI is building a war chest to unleash new capabilities in AI, its main rivals, OpenAI, Google, and Meta, are also doubling down on their investments and seeking fresh funding to win the AGI battle. Earlier in March this year, OpenAI announced one of the largest private funding rounds in history as it raised $40 billion in a round that valued the company at $300 billion post-money. SoftBank led the financing, CNBC reported. Other participants included Microsoft, Coatue, Altimeter, and Thrive, all of which are earlier backers in the outfit. According to the company, the funding would enable it to push the frontiers of AI research even further, scale its compute infrastructure, and deliver increasingly powerful tools for the 500 million people who use ChatGPT every week. Follow us for Breaking News and Market Intelligence. Tags: