xAI Acquisition, Valuation, Funding & Investors

xAI was acquired by SpaceX for $250B in February 2026.

See full xAI profile

xAI acquisition price

$250B

Acquired by SpaceX · Feb 2026

xAI revenue at acquisition

$280M

Last twelve months · Feb 2026

Cumulative funding xAI raised

$36B

across 5 funding rounds

Key investors in xAI

  • Fidelity
  • Valor Equity Partners
  • Andreessen Horowitz
  • Sequoia Capital
  • NVIDIA
  • Qatar Investment Authority

xAI Overview

About xAI

xAI is a San Francisco-headquartered artificial intelligence company building large language models for scientific reasoning. Founded in 2023 by Elon Musk, it released Grok-1.5 with vision capabilities trained on Colossus supercluster. xAI advances multimodal AI for physics simulations and frontier research.


Founded

2023

HQ

United StatesSan Francisco, CA

Website

x.ai

Status

Acquired

Customer focus

B2C & B2B

Revenue model

Subscription, Usage-based

Revenue

$210M (Jan 2026)

Valuation

$230B (Jan 2026)

xAI Acquisition

xAI was acquired by SpaceX for $250B on 2 February 2026.

Before the acquisition xAI had raised $36B across 5 funding rounds.

SpaceX announced on 2 February 2026 that it had acquired xAI in an all-stock transaction valuing xAI at $250 billion and SpaceX at $1 trillion, creating a combined company worth about $1.25 trillion in the largest merger ever completed and the largest acquisition of a private target on record. xAI became a wholly owned subsidiary, bringing the Grok family of large language models, the X social platform it had absorbed in March 2025 and the Colossus supercomputer campus in Memphis under the same roof as SpaceX's launch business and Starlink satellite network. Elon Musk framed the combination as a vertically integrated engine spanning rockets, space-based connectivity, direct-to-mobile communications and frontier AI, with plans for orbital data centres, and the deal was widely read as preparation for a SpaceX initial public offering. The $250 billion value was a modest step up from the $230 billion post-money set by xAI's $20 billion Series E four weeks earlier. xAI's revenue was reported in the low hundreds of millions of dollars annualised at the time against a monthly cash burn of about $1 billion.

xAI acquisition details
AcquirerDateTypePriceEV/Revenue
2 Feb 2026Strategic M&A$250B892.9x

Sources: cnbc.com, sullcrom.com

xAI Valuation

xAI is currently valued at $230B, based on its Series E in January 2026. Read the announcement ↗

The $20B round included NVIDIA, Fidelity, StepStone Group, Qatar Investment Authority, Cisco Investments and 4 other investors.

xAI's valuation has grown 9.6x from $24B at its Series B in May 2024 to $230B in January 2026, across 3 priced rounds.

xAI valuation by funding round

Revenue multiple
xAI valuation by funding round
DateStageValuationRevenue Multiple
Jan 2026Series E$230B1095.2x
Nov 2024Series C$50B-
May 2024Series B$24B-

xAI Revenue

xAI's latest recorded revenue is $210M, as of its Series E in January 2026.

xAI revenue by funding round

xAI revenue and valuation multiple by funding round
DateRevenue *ValuationRevenue MultipleStage
Jan 2026$210M$230B1095.2xSeries E

* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.

xAI Funding History

xAI has raised a total of $36B across 5 funding rounds, plus 1 secondary share sale.

xAI's first fundraising round was a $135M undisclosed-stage round in December 2023. The most recent completed round was a $20B Series E in January 2026.

xAI funding rounds

xAI funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Jan 2026Series ENVIDIA; Fidelity; StepStone Group; Qatar Investment Authority; Cisco Investments; Baron Capital; Manhattan Venture Partners (MVP); Valor Equity Partners; Tesla$20B$230BxAI, Elon Musk's AI company behind the Grok chatbot, raised $20 billion in an upsized Series E funding round announced on January 6, 2026, exceeding the $15 billion target. Investors include Valor Equity Partners, Fidelity, Qatar Investment Authority, Nvidia, and Cisco as strategic investors, though the query lists additional investors like Baron Capital, Cisco Investments, Manhattan Venture Partners, StepStone Group, and Tesla which align partially with reported participants. The round valued xAI at approximately $230 billion post-money. During the first nine months of 2025, xAI generated $210 million in revenue while burning through $9.5 billion in cash, highlighting the capital-intensive nature of AI development with monthly expenditures exceeding $1 billion primarily on chips and data centers. The funding will support expansion of data centers and Grok models, amid xAI's reported 600 million monthly active users across X and Grok. This round follows high cash burn and positions xAI behind competitors like OpenAI ($500B valuation) and Anthropic ($350B), with subsequent developments including a $2B Tesla investment and a merger with SpaceX valuing xAI at $250B in February 2026.
Dec 2025SecondaryNeptune Digital Assets (lead)$300K-xAI is an artificial intelligence company developing advanced AI systems, including the Grok large language model and the Colossus supercomputer cluster, with a mission to accelerate human scientific discovery. Neptune Digital Assets Corp., a blockchain infrastructure and frontier technology company, entered into an agreement on December 11, 2025, to invest US$300,000 in xAI by acquiring 3,601 shares, providing early exposure to AI innovation. The investment closed in early 2026, aligning with Neptune's strategy to diversify into high-growth technologies like AI alongside its existing SpaceX holdings and digital assets. Following the investment, SpaceX announced plans to acquire xAI, with xAI shareholders expected to receive 0.1433 SpaceX shares per xAI share. Neptune's 3,601 xAI shares are anticipated to convert into approximately 516 SpaceX shares, enhancing Neptune's exposure to space and AI integration. This positions Neptune at the intersection of AI, space exploration, and blockchain.
Jul 2025Strategic investmentSpaceX (lead); Launchbay Capital; Natural Capital$5.3B-xAI raised about $5 billion of new equity in July 2025 as part of a $10 billion financing that also included $5 billion of debt arranged by Morgan Stanley, with SpaceX committing $2 billion of the equity in its first investment in a sister Musk company, as reported by the Wall Street Journal on 13 July 2025. The raise followed xAI's all-stock merger with X in March 2025, which had valued the combined group at $113 billion, and funded the expansion of the Colossus supercomputer in Memphis and the training of Grok 4. Other equity participants included existing xAI backers such as Valor Equity Partners, Fidelity and Kingdom Holding together with secondary specialists including Launchbay Capital. Elon Musk said the investment reflected plans to integrate Grok into Starlink customer support and, potentially, Tesla's Optimus robots. xAI, founded in 2023 and headquartered in the San Francisco Bay Area, develops the Grok family of large language models and was reported to be spending about $1 billion a month at the time.
Nov 2024Series CNVIDIA; MGX; Fidelity; Qatar Investment Authority; AMD; Oman Investment Authority; Andreessen Horowitz; BlackRock; Sequoia Capital; Lightspeed Venture Partners; Morgan Stanley; Manhattan Venture Partners (MVP); Valor Equity Partners; Kingdom Holding; Vy Capital$5B$50BxAI, Elon Musk's generative AI startup, raised $5 billion in a November 2024 funding round at a $50 billion post-money valuation, more than doubling from its prior $24 billion valuation after a $6 billion Series B in May 2024. Investors included Andreessen Horowitz, Sequoia Capital, Valor Equity Partners, Qatar Investment Authority, and others aligning with the queried list such as Fidelity and Blackrock in related reports. The funds support AI infrastructure like purchasing 100,000 Nvidia chips and building the 'Colossus' supercomputer with 100,000 H100 GPUs. This round positions xAI as a top AI contender behind OpenAI, with product advancements like Grok-1.5 featuring improved contextual and image understanding integrated into the X platform. Total funding raised by xAI in 2024 reached $11 billion.
May 2024Series BRedstone.VC; SquareOne Capital; Fidelity; Andreessen Horowitz; HOF Capital; Sequoia Capital; Driving Forces; Valor Equity Partners; Kingdom Holding; Vy Capital; Autopilot Ventures$6B$24BxAI, Elon Musk’s generative AI startup focused on developing truthful and advanced AI systems to understand the universe, announced its Series B funding round of $6 billion on May 26, 2024. Key investors included Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal, and Kingdom Holding, among others matching the query's list. The round valued xAI at a post-money valuation of $24 billion, following a pre-money valuation of $18 billion, positioning it as the second-most-valuable generative AI company behind OpenAI. Funds will support bringing products like Grok to market, building advanced infrastructure such as a compute gigafactory, and accelerating R&D. xAI had released Grok-1 in November 2023, followed by Grok-1.5 and Grok-1.5V with enhanced capabilities, and open-sourced Grok-1.
Dec 2023Undisclosed stage-$135M--

Who has invested in xAI?

28 investors have backed xAI across its funding rounds, including Fidelity, Valor Equity Partners, Andreessen Horowitz, Sequoia Capital, NVIDIA and Qatar Investment Authority.

Lead investors include Neptune Digital Assets and SpaceX.


xAI Investors

Investors in xAI by funding rounds participated
InvestorHQRoundsRoleFirst check
FidelityUnited StatesBoston, MA3ParticipantMay 2024
Valor Equity PartnersUnited StatesChicago, IL3ParticipantMay 2024
NVIDIAUnited StatesSan Jose, CA2ParticipantNov 2024
Qatar Investment AuthorityQatarDoha2ParticipantNov 2024
Andreessen HorowitzUnited StatesSan Francisco, CA2ParticipantMay 2024
Sequoia CapitalUnited StatesSan Francisco, CA2ParticipantMay 2024
Manhattan Venture Partners (MVP)United StatesNew York City, NY2ParticipantNov 2024
Kingdom HoldingSaudi ArabiaSaudi Arabia2ParticipantMay 2024
Vy CapitalUAEDubai2ParticipantMay 2024
MGXUAEAbu Dhabi1ParticipantNov 2024
Redstone.VCGermanyBerlin1ParticipantMay 2024
SpaceXUnited StatesStarbase, TX1LeadJul 2025
SquareOne CapitalUnited StatesMiami, FL1ParticipantMay 2024

This data is available for Pro users. Sign up to see all 28 xAI investors.

Start Free Trial

Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples

Sign up to see data on 350K+ funding rounds and disclosed revenue and EBITDA valuation multiples, from seed, through growth stage, to pre-IPO.

Start Free Trial

Acquisitions by xAI

xAI has acquired 2 companies to date.

Last acquisition by xAI was on March 28th 2025. xAI acquired X (formerly Twitter) for $44B.


Latest Acquisitions by xAI

X (formerly Twitter)
Hotshot
Description
X is a global social networking service formerly known as Twitter that facilitates 280-character posts called tweets via web, SMS, and mobile apps. Available in over 35 languages, the San Francisco-headquartered platform serves world leaders, athletes, news outlets, and entertainers with real-time communication features.
Hotshot is a generative AI platform specializing in text-to-video generation. Its models produce high-quality videos from textual prompts, supporting styles like cinematic, animation, and realistic footage. The San Francisco-headquartered startup enables creators to generate clips up to 10 seconds long at 720p resolution. Hotshot focuses on controllable outputs with options for camera motion, character consistency, and scene transitions. Launched in 2024, it serves filmmakers, marketers, and social media content producers through an accessible web interface.
HQ CountryUnited StatesUnited States
HQ City
Austin, TX
New York City, NY
Deal Date28 Mar 202514 Mar 2025
Valuation$44Bundisclosed
EV/Revenue
EV/EBITDA

This data is available for Pro users. Sign up to see all xAI acquisitions and their M&A valuation multiples.

Start Free Trial

xAI Competitors

xAI competitors include listed companies like Snowflake and Presight AI, and private ones like OpenAI, Anthropic, DeepSeek and Mistral AI.

Public and private companies comparable to xAI
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
OpenAIUnited StatesSan Francisco, CAPrivate$25B-$852B34.1x
AnthropicUnited StatesSan Francisco, CAPrivate$47B-$965B20.5x
DeepSeekChinaHangzhouPrivate--$50B-
Mistral AIFranceParisPrivate$400M-$24B-
SnowflakeUnited StatesUnited StatesPublicly listed$4.7B($1.3B)$117B20.3x
Presight AIUAEUAEPublicly listed$825M$214M$5.7B5.4x

xAI Public Comps

xAI is no longer listed, but its public comps include SAP, CrowdStrike, IBM, Salesforce, ServiceNow, Snowflake, Datadog, Adobe, Moody's and Palantir.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
SAP$41B$13B5.9x5.4x18.6x17.2x
CrowdStrike$4.8B($12M)55.6x47.5x(21435.0x)160.4x
IBM$68B$17B3.9x3.8x15.9x13.7x
Salesforce$42B$13B5.2x4.8x16.6x11.3x
ServiceNow$13B$2.6B11.0x9.4x56.9x24.5x
Snowflake$4.7B($1.3B)25.2x20.3x(92.5x)116.7x
Datadog$3.4B($588K)27.3x22.1x(159394.2x)88.3x
Adobe$24B$9.3B3.9x3.5x9.9x7.4x

This data is available for Pro users. Sign up to see all xAI competitors and their valuation data.

Start Free Trial

Common questions about xAI

When was xAI founded?xAI was founded in 2023.
Where is xAI headquartered?xAI is headquartered in San Francisco, CA, United States.
Is xAI publicly listed?No, xAI was acquired by SpaceX in February 2026.
Who acquired xAI?xAI was acquired by SpaceX in February 2026.
How much was xAI acquired for?xAI was acquired for $250B in February 2026.
What is xAI's valuation?xAI was last valued at $230B in its Series E in January 2026.
How much funding has xAI raised?xAI has raised $36B across 5 funding rounds.
What was xAI's last funding round?xAI's last funding round was a $20B Series E in January 2026.
Who are xAI's investors?xAI's investors include Fidelity, Valor Equity Partners, NVIDIA, Qatar Investment Authority, Andreessen Horowitz, Sequoia Capital, Manhattan Venture Partners (MVP), Kingdom Holding, Vy Capital, MGX and 18 others.
What is xAI's revenue?xAI's latest recorded revenue is $210M (January 2026).
Which companies are comparable to xAI?Companies comparable to xAI include OpenAI, Anthropic, DeepSeek, Mistral AI, Snowflake and Presight AI.
How many companies has xAI acquired?xAI has acquired 2 companies, including X (formerly Twitter) and Hotshot.
What was the largest acquisition by xAI?The $44B acquisition of X (formerly Twitter) in March 2025 is the largest acquisition xAI has made to date.

See companies similar to xAI

Start Your
Free Trial Today

Try Multiples for free for 3 days. Got questions or need a demo? Schedule a call with us below.

Start Trial