According to a Bloomberg report, Musk’s xAI only has $4 billion left on its balance sheet out of the $14 billion it has raised since its founding in 2023.

Elon Musk’s artificial intelligence startup xAI is reportedly in talks to raise $4.3 billion through an equity investment because it’s running short on funds.

According to a report by Bloomberg, this fundraising is in addition to the $5 billion the company has reportedly been trying to borrow from debt investors. 

The report added that xAI needs the new money partly because it has already spent most of the money it previously raised.

It cited that xAI only has $4 billion left on the balance sheet out of the $14 billion it has raised since its founding in 2023. 

Sources told Bloomberg that commitments on the $5 billion debt sale are due Tuesday. Morgan Stanley has reportedly been pitching xAI’s debt to investors at a rate exceeding 10%.

The report also said that in addition to the fresh funding, xAI may also get a $650 million rebate from one of its manufacturers that will help the firm cut costs. 

Despite the heavy outlays, investors have reportedly been told that the company was valued at roughly $80 billion at the end of the first quarter (Q1), up from $51 billion at the end of 2024. 

Previous investors in Musk’s company, known for the AI chatbot Grok, include Andreessen Horowitz, Sequoia Capital, and VY Capital.

Musk recently decided to merge xAI with X, the platform formerly known as Twitter, though the proceeds from any new fundraising would reportedly remain earmarked for xAI’s artificial intelligence efforts.

Neither Musk nor xAI has publicly commented on the report yet. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

Read also: Sapphire Reserve Fee Hiked To $795 By JPMorgan – Here’s How It’s Challenging American Express Platinum Cards