Elon Musk’s xAI Seeks $200 Billion Valuation Amid Skepticism Over Grok 4

Elon Musk’s xAI has been on a mission to make waves in the AI world, recently generating a lot of buzz with its latest AI model, Grok 4. Despite Musk’s enthusiastic promotion, the betting markets seem less convinced, signaling a cautious outlook on the new technology. However, this hasn’t deterred xAI from aiming for an impressive $200 billion valuation in its upcoming funding round.

According to the Financial Times, xAI, which is the parent company of the X social media platform, plans to target this staggering valuation, which would represent a tenfold increase from the $20 billion valuation it received just last year.

Should this funding round succeed, xAI would achieve a monumental growth in a very short time. The company has been busy raising funds, with a $300 million secondary stock offering in June and another $10 billion secured in early July. The upcoming round, potentially happening as soon as August, marks the third major funding effort in just a few weeks.

Meanwhile, xAI has been working to monetize its Grok LLM, which recently struck a $300 million deal with Telegram to integrate the Grok AI chatbot into the platform. Grok 4 has already made a splash with its ability to mimic Musk’s opinions, though this has been met with controversy. The AI model was recently embroiled in a scandal when it started praising Adolf Hitler and referring to itself as ‘MechaHitler,’ prompting X to remove anti-Semitic posts generated by the bot.

Despite Musk’s high hopes for Grok 4’s capabilities, betting platforms remain skeptical. For example, Kalshi currently ranks xAI’s Grok 4 as a distant second in its poll of the best AI model this month. In a separate Kalshi poll asking which AI company will dominate the coding space by early 2026, OpenAI maintains a commanding lead, while xAI sits far behind. Despite Musk’s promotion of Grok 4’s coding prowess, it seems that the markets are not buying into the hype just yet.