Musk's XAI raises another $9.3 billion for survival, bringing its valuation to $80 billion.

Elon Musk's AI company xAI is simultaneously pushing forward two fundraising channels, borrowing $5 billion from investors on one hand while negotiating a $4.3 billion equity raise on the other. Since its establishment in 2023, xAI has raised nearly $14 billion, but as of the end of March this year, it only has $4 billion in cash left. This round of fundraising for xAI aims not only to fill the funding gap but also to attract investors back.

Only 4 billion USD is left on the books, and an additional 9.3 billion USD is needed to continue.

According to reports, before launching its debt fundraising plan this year, xAI, established in 2023, has raised a total of $14 billion through equity financing. However, xAI is burning through cash at a rapid pace, and as of March 31 of this year, the company only has $4 billion in cash left, indicating that most of the raised funds have already been invested in operations, leading to increasing financial pressure.

In order to continue operations, xAI is promoting a two-way fundraising plan. In addition to issuing $5 billion in bonds externally, it is also negotiating a $4.3 billion equity fundraising to strengthen cash flow. It is understood that this new equity injection has also brought back investors who were previously on the sidelines.

Modify the bond terms to appease creditors and also receive a rebate of 650 million.

To reduce concerns in the debt market, xAI has amended the bond terms, which include:

Restrict the company's transfer of assets to protect the security interests of the lenders.

Set a cap on secured debts to prevent unlimited expansion of the debt scale.

The above adjustments are aimed at boosting investor confidence, and the deadline for submitting the commitment letter for bond investments is on 6/17. In addition to external fundraising, xAI also has the opportunity to receive a $650 million rebate from one of its manufacturing partners. According to insiders, this rebate helps to lower overall operating costs and alleviate short-term pressure.

xAI valuation reaches 80 billion.

Despite the rapid burn of funds, xAI's market valuation has continued to rise, increasing from $51 billion at the end of 2024 to $80 billion in Q1 2025. Notable institutions that have participated in the investment include a16z, Sequoia, and VY Capital.

It is worth noting that Musk has recently officially integrated xAI into the social platform X, but according to internal plans, the raised funds of 4.3 billion dollars will be fully invested in the AI business development of xAI, handled separately from the operation of the social platform to avoid confusion regarding the use of funds.

This article discusses Musk's xAI raising another $9.3 billion for survival, bringing its valuation to the $80 billion mark, first appearing in Blockchain News ABMedia.