Musk's xAI Raises $15 Billion Despite CEO Calling Funding Reports 'False' on X

Nov 14, 2025
CNBC
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Summary

Elon Musk's AI startup xAI secures $15 billion in funding, reaching a $200 billion valuation, while Musk simultaneously denies the reports as 'false' on X, creating confusion as the company faces criticism over its chatbot spreading misinformation and environmental concerns from energy-intensive data centers.

Key Points

  • Elon Musk's artificial intelligence company xAI raises $15 billion from investors, adding $5 billion to a previous $10 billion round that valued the startup at $200 billion
  • Musk denies the funding report by calling the news 'False' on his social media platform X, despite sources confirming the information to CNBC
  • Much of the funding will purchase graphic processing units for large language models, as xAI faces criticism for its chatbot Grok spreading false content and its power-hungry data centers causing environmental concerns in Memphis

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