Elon Musk’s AI firm, xAI, is at the center of a funding controversy. On Friday, sources told CNBC the company is raising $10 billion at a massive $200 billion valuation. A $200 Billion Valuation ClashThe reported $200 billion figure would represent a staggering leap from its $18 billion pre-money valuation in May 2024. OpenAI recently held a secondary share sale valuing it at $500 billion, while Anthropic raised funds at a $183 billion valuation, according to reports. This financial arms race is fueled by the immense cost of developing frontier models and the supercomputing infrastructure they require.