The Boring Company, Elon Musk’s tunneling venture, has raised $3 billion in a private funding round that lifts its valuation to $23 billion, according to disclosures reported on September 10. The round drew backing from the United Arab Emirates, marking a deeper push into the Middle East for the closely held firm.
The financing represents one of the larger private raises for a Musk-controlled company outside Tesla and SpaceX. It values the tunneling startup well above its earlier funding benchmarks and gives it fresh capital as it seeks to expand infrastructure projects abroad.
The Boring Company works closely with Tesla, sharing engineering resources and executives across Musk’s corporate empire. Founded in 2016, the firm builds underground transit tunnels designed to move vehicles and passengers beneath congested cities, positioning itself as an alternative to conventional surface transport.
Its highest-profile operational project is the Las Vegas Loop, a network of tunnels ferrying passengers in Tesla vehicles beneath the Las Vegas Convention Center. The company has pursued expansion into additional US cities, though several proposals have met regulatory and permitting hurdles.
The UAE-led round reflects continued interest from Gulf sovereign investors in Musk-linked ventures. Middle Eastern capital has flowed into several of his companies in recent years, including his artificial intelligence firm. In the spring, Musk’s xAI pursued a funding round valued near $20 billion, drawing on a similar pool of global investors.
The Boring Company has faced scrutiny over some of its domestic work, including questions raised earlier this year about a proposed tunnel project in Nashville. Its underground ambitions rely on securing municipal contracts and clearing environmental reviews, processes that have slowed several planned routes.
The new capital positions the firm to target infrastructure work in the Gulf region, where governments have committed large sums to transport and construction projects. Neither the company nor its backers detailed specific projects tied to the raise.
The $23 billion valuation places the tunneling firm among the more highly valued of Musk’s private holdings, trailing SpaceX but ahead of several smaller ventures. The company remains privately held and does not disclose detailed financial results.