Elon Musk’s AI company xAI raised $10 billion to grow its chatbot and supercomputer projects.
- xAI secures major funding to expand Grok chatbot and Colossus supercomputer
- The investment highlights rising competition with OpenAI and Anthropic
- Musk’s feud with Trump resurfaces, adds political tension
xAI Gets a Huge Investment
Elon Musk’s company xAI just raised $10 billion in new funding. The money is split evenly between debt and equity investments. This support gives xAI the resources to build more AI tools and power up its large-scale Memphis-based Colossus supercomputer.
The funds will also be used to improve Grok, xAI’s chatbot. Grok is already integrated into X, Musk’s social media platform. This big move shows that major investors believe in xAI’s future and want to support its goals.
Competing with OpenAI and Anthropic
This raise comes as other American AI companies grow fast. OpenAI recently got $40 billion in funding and is now valued at $300 billion. Another competitor, Anthropic, recently hit a valuation over $60 billion. By comparison, xAI was last valued at $80 billion after Musk sold X to the company.
Musk is now working hard to catch up with these rivals. Training AI models like Grok and building computing infrastructure takes a lot of money, so this $10 billion will help xAI stay in the race.
Musk and Trump Are Feuding Again
At the same time, tensions are rising between Elon Musk and U.S. President Donald Trump. This week, Trump posted on Truth Social accusing Musk of depending on government support. He said officials should look into Musk’s projects to reduce costs.
Musk did not stay quiet. He quickly replied on X, calling for the government to “CUT IT ALL,” suggesting he does not rely on federal help anymore. Their arguments have affected financial markets before. In one case, Tesla lost $150 billion in value during a clash in 2024.
Crypto Tax Reform Moves Forward
Separately, Senator Cynthia Lummis proposed a change to U.S. tax rules for crypto users. Her amendment, added to Trump’s tax bill, would cut or delay taxes on digital asset transactions under specific limits. These include a cap of $300 per transaction and a $5,000 yearly limit. It also gives users more time to report income from mining, staking, or receiving airdrops.
The proposal aims to make using crypto easier for regular people, providing more tax relief and clearer rules. While one Senate amendment to ban crypto ownership for officials was rejected, this one could help crypto gain broader support in U.S. law.
Source: cointelegraph.com