Elon Musk’s artificial intelligence startup xAI is in talks to raise $4.3 billion through an equity investment on top of the $5 billion it has recently been trying to borrow from debt investors, according to information the company shared with investors who asked not to be identified because it is private.

Investors rally behind AI challenger with $5bn debt orders and $4.3bn equity push as Musk seeks edge over OpenAI.

Elon Musk's xAI faces a staggering $1 billion monthly cash burn, driven by massive AI training costs and talent acquisition, as it races to compete with industry giants despite rapid Grok development.