Zaid Admani

The company is currently facing a lawsuit alongside Roblox over safety features, and US government officials have also criticized the platform, alleging that it's being used by extremist groups to recruit and radicalize young Americans.

So the company is facing some challenges and we'll see if they decide to move forward with an IPO this year.

Zooming out though, this filing is a sign that the IPO window is still open when it comes to tech companies.

In 2025, tech IPOs raised more than $15.6 billion on US exchanges, which is more than double the total from 2024.

That also marked a rebound from a brutal three-year slump.

One of my predictions for this year is that this is going to be the biggest IPO year of all time, especially with SpaceX and Anthropic potentially hitting the public markets.

Let's shift gears and talk about XAI.

Elon Musk's AI company just raised $20 billion, and this deal more than doubles XAI's valuation from last year to around $230 billion today.

This funding round included some big-time names like Nvidia, Cisco, Fidelity, along with Middle Eastern sovereign wealth funds.

Just like the other AI companies, XAI is burning a ton of cash right now, roughly a billion dollars a month to build massive data centers and buy GPUs.

XAI continues to expand its giant campus in Memphis, Tennessee, which could soon approach two gigawatts, according to Elon Musk.

Now remember, XAI also owns X, formerly known as Twitter, and X has been the main marketing tool for Grok, which is XAI's chat bot.

The company claims they now reach around 600 million monthly active users across Grok and X combined.

But I think there's still some questions on the path to profitability.

I personally don't know that many people paying for Grok versus paying for ChatGPT.

But XAI has no plans of slowing down.

They're already training their next big AI model called Grok 5.

Now I should mention the company is facing some scrutiny right now in multiple countries because users on X are using Grog to generate inappropriate, potentially illegal photos of women without their consent.

So obviously that's not great.

We'll see how the company responds, but that backlash hasn't stopped them from raising more funds.