Elon Musk has spent the past few days relentlessly hyping up xAI's latest AI model, Grok 4. Although the betting markets are not buying Musk's hype just yet, this has not stopped xAI from eyeing an eye-watering valuation at it's upcoming funding round.
To wit, the Financial Times is now reporting that Elon Musk's xAI, which also happens to be the parent entity of the X social media platform, is targeting a $200 billion valuation in an upcoming funding round.
Interestingly, should xAI succeed in commanding such a lofty valuation, it would mark a 10x increase in its value in just over a year, based on the $20 billion valuation that Elon Musk's AI-focused startup had clinched back in early 2024.
xAI's next funding round could materialize as soon as August, and would mark the startup's third major cash-raising exercise in the past few weeks. For context, do note that xAI raised $300 million via a secondary stock offering in June, and raised another $10 billion in early July.
Of course, xAI is already trying to monetize its Grok LLM. For instance, the company recently inked a $300 million deal with Telegram to integrate its Grok AI chatbot with the social media platform.
Meanwhile, xAI's Grok 4 is already attracting eye balls for perfectly parroting Elon Musk's opinions. This comes as xAI's bespoke LLM was recently mired in a controversy when it started praising Adolf Hitler, all the while referring to itself as "MechaHitler." This episode then prompted X to delete a number of Grok's posts that were deemed anti-Semitic.
As stated earlier, betting platforms are not very enthusiastic about Grok 4's abilities right now. For instance, Kalshi currently ranks xAI's Grok a distant second in its poll of the best AI model this month.
Similarly, as per another Kalshi poll that asks which AI company will have the best coding model by early 2026, OpenAI continues to command a distinct lead, with xAI again polling at a distant second place. Interestingly, Elon Musk has been relentlessly hyping up Grok 4's coding abilities over the past few days. It seems Kalshi users are not buying Musk's hype just yet.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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