xAI Raises $10B While Elon Musk Clashes with Washington Again
Elon Musk’s xAI has secured $10 billion in fresh capital, further escalating the race among U.S. tech giants in the AI sector.
The funding — split evenly between equity and debt — is expected to boost the development of Grok, xAI’s flagship chatbot, and fuel expansion of its Memphis-based Colossus supercomputer, according to CNBC.
Investors rushed to back the deal, which was reportedly oversubscribed, positioning xAI more aggressively against OpenAI and Anthropic, both of which have already raised tens of billions this year. The raise follows Musk’s decision to sell his platform X to xAI earlier this year in a move valuing the firm at $80 billion.
At the same time, Musk’s public spat with President Donald Trump resurfaced after Trump criticized Musk’s government-linked ventures, suggesting a federal audit could slash spending. Musk, in response, called for cutting all subsidies altogether. Their feud previously wiped billions from Tesla’s market value.
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Elsewhere in Washington, Senator Cynthia Lummis proposed a crypto-friendly amendment to Trump’s tax package, aiming to ease tax burdens on small digital asset transactions and defer taxes on mined and staked tokens until sold. The Senate recently rejected a separate attempt to restrict crypto holdings by public officials.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
