Elon Musk’s generative AI startup, xAI, has raised $10 billion in debt and equity, reported CNBC.

The company secured $5 billion through a strategic equity investment, according to Morgan Stanley as cited by CNBC. The remainder of the capital was obtained through term loans and secured notes.

The raise comes just over six months after xAI raised $6 billion in a Series C round of funding at a $50 billion valuation. That financing included participation from Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Co., and Kingdom Holding Co., among others. XAI also raised $6 billion in a May 2024 Series B round that valued the company at $24 billion.

It is not known what xAI’s new valuation is after this latest financing.

The company will now have more dry powder with which to build out its ChatGPT competitor, Grok. The chatbot is trained off data from another one of Musk’s companies, X. In March, xAI acquired X. According to CNBC, xAI was valued at $80 billion in the deal, while X was valued at $33 billion.

xAI competes with a number of other startups including OpenAI, Anthropic and Mistral AI. In late March, OpenAI announced it had raised $40 billion, one of the largest private funding rounds ever raised. It was valued at $300 billion after that financing.

Meanwhile, in early March, Anthropic was valued at $61.5 billion post-money after raising $3.5 billion in a Series E round of funding.

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Illustration: Dom Guzman