Musk says he’s looking to put ‘proper value’ on xAI during investor call, sources say
Tesla CEO Elon Musk attends a cabinet meeting at the White House in Washington, D.C., U.S., April 10, 2025.
Nathan Howard | Reuters
Elon Musk is looking to put “proper value” on his artificial intelligence startup xAI, sources told CNBC’s David Faber.
The comments came during a call with xAI investors last week, sources familiar with the matter told Faber. While the Tesla CEO didn’t explicitly address an upcoming funding round, the sources interpreted the comments as a sign that xAI is getting set up for a significant capital raise in the near future.
CNBC was unable to confirm that the company is actively looking at a raise.
The sources also said the company discussed revenue at a potential run rate of $1 billion or more on the call.
The raise would mark another significant milestone for xAI just months after CNBC reported that the company was raising up to $6 billion at a $50 billion valuation to buy up 100,000 Nvidia chips. The funding was reportedly a combination of $5 billion from Middle East sovereign funds and $1 billion from other investors.
Musk announced the AI startup in July 2023. At the time, the company said its goal was to “understand the true nature of the universe.” xAI launched a chatbot called Grok last year, which it claimed at the time had debuted with two months of training and real-time internet knowledge. xAI is looking to use the chatbot to compete against other AI chatbots, including Anthropic’s Claude and ChatGPT maker OpenAI, which Musk helped launch before leaving the project in 2018.
In March, Musk said that the startup had merged with social media platform X in an all-stock deal valuing the combined entity at $80 billion. Musk said that X had been valued at $33 billion.
“xAI and X’s futures are intertwined,” Musk wrote in a post on X announcing the merger. “Today, we officially take the step to combine the data, models, compute, distribution and talent.”
Since President Donald Trump’s inauguration, Musk has focused much of his time on the Department of Government Efficiency, leaving questions about the stability of his companies as Tesla shares have fallen over 40% this year. His presence on the call could be a signal that he’s re-focusing on his business entities.
WATCH: Elon Musk held call with current xAI investors, sources say
Technology
How Broadcom’s big OpenAI deal fits into the data center boom and what it means for the AI trade
Oracle CEO, Clay Magouyrk, sits down with CNBC’s David Faber on Oct. 13, 2025.
CNBC
Oracle CEO Clay Magouyrk, one of the two people tapped last month to lead the software company, is confident that OpenAI will be able to cover the costs of the massive amount of cloud infrastructure services it consumes.
In an interview with CNBC’s David Faber at Oracle’s AI World conference on Monday, Magouyrk said “of course” OpenAI can pay $60 billion for a year’s worth of cloud resources. In July, OpenAI agreed to a five-year deal with Oracle that’s worth over $300 billion.
“Just look at the rate at which they’ve grown to, you know, almost a billion users. That’s just unheard of,” said Magouyrk, who sat alongside fellow Oracle CEO Mike Sicilia for the interview in Las Vegas.
OpenAI said last week that its flagship ChatGPT chatbot, which was publicly launched less than three years ago, now has 800 million weekly active users. In 2024, OpenAI recorded a $5 billion net loss.
Sicilia said Oracle has started integrating OpenAI artificial intelligence models into a patient portal for viewing electronic health records. Oracle acquired EHR vendor Cerner for about $28 billion in 2022.
“I’ve seen the results, and I really do think that they’re going to have a dramatic impact on industries, on enterprises of all types,” Sicilia said of OpenAI.
OpenAI rents out Nvidia graphics chips to run models through Oracle, as well as CoreWeave, Google and Microsoft. At the same time, the company is designing a custom AI processor that Broadcom will build. Earlier on Monday, Broadcom and OpenAI said they will jointly deploy 10 gigawatts worth of the new OpenAI chips.
Building out that much infrastructure requires a hefty amount of new energy.
“I think it’s a factor of time, not a factor of if we’ll have enough power,” Sicilia said.
Oracle shares rose almost 6% on Monday. The stock has gained 86% this year, lifting Oracle’s market cap close to $900 billion.
WATCH: Oracle CEO Magouyrk: ‘Of course’ OpenAI can pay $60 billion per year
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