**[Seoul=Newsis] Reporter Park Mi-sun =** Elon Musk’s artificial intelligence (AI) company, xAI, is expected to attract investment funds amounting to approximately $9.3 billion USD (about 12.8 trillion KRW) despite conflicts with U.S. President Donald Trump.
According to the Financial Times on the 17th (local time), xAI plans to secure new investments totaling $9.3 billion USD by issuing $5 billion USD (about 6.88 trillion KRW) in bonds and $4.3 billion USD (about 5.92 trillion KRW) in stocks.
As competitors invest heavily in high-performance chip-based data centers capable of running large-scale language models, xAI plans to use the raised funds to establish a new data center.
Founded in 2023, xAI is fiercely competing with companies developing and commercializing AI tools such as OpenAI and Anthropic. In response to OpenAI’s ChatGPT and Google’s Gemini, xAI launched its own chatbot, “Grok.”
In March, Musk merged xAI with his social media company, X (formerly Twitter), valuing the company at $113 billion USD in the transaction.
Some predicted that xAI’s funding would not be easy due to recent attacks between Musk and President Trump on social media. However, after Musk expressed regret over his attacks on Trump, the hostilities ended.
In fact, the close relationship between Musk and Trump became a decisive factor for investors choosing to invest in xAI. Musk reportedly highlighted his relationship with Trump as a competitive advantage over rivals like OpenAI and Anthropic during the investor persuasion process.
The Financial Times reported that when the relationship between Musk and Trump deteriorated, investors were hesitant to invest, and some even withdrew from participating in the investment.
xAI recorded a first-quarter EBITDA loss of $341 million USD (about 469.6 billion KRW) this year. While the company is spending heavily on investments and has not yet generated profits, it has an optimistic outlook, forecasting EBITDA earnings to exceed $13 billion USD (about 17.9 trillion KRW) by 2029.