Elon Musk's xAI is targeting a valuation of up to $200 billion in its upcoming fundraising round. Launched in 2023, the company's value has rapidly grown from $51 billion to $80 billion in early 2025. To compete with ChatGPT, Anthropic, and Google Gemini, xAI has invested heavily in infrastructure, including a supercomputer cluster with 200,000 Nvidia GPUs and plans for a larger system with one million Blackwell GPUs. The company is spending nearly $1 billion monthly, with projected 2025 expenses of $13 billion against just $500 million in expected revenue. Despite raising $14 billion total, xAI had only $4 billion in reserves as of March 2025, highlighting the substantial financial challenges facing its ambitious AI development plans.