Elon Musk’s The Boring Company has raised $3 billion at a $23 billion valuation, more than quadrupling its 2022 valuation as the tunnel startup prepares to expand its infrastructure across the United Arab Emirates.
The funding round was led by the UAE and affiliated investment entities, with participation from investors including Sequoia Capital, Andreessen Horowitz, Temasek, Vy Capital and Baron Capital. The Boring Company was valued at about $5.7 billion after its previous $675 million round in 2022.
A major use of the new capital will be an expanded UAE partnership covering more than 150 kilometres of underground infrastructure. The programme builds on the Dubai Loop, The Boring Company’s first contracted passenger project in the country.
Dubai’s Roads and Transport Authority signed a definitive agreement for the Dubai Loop in 2026. Its initial 6.4-kilometre section will connect Dubai International Financial Centre with Dubai Mall through four stations. The complete planned network would extend roughly 22.5 kilometres across 19 stations, using electric vehicles inside 3.6-metre-wide tunnels. The first phase is estimated to cost about $154 million, while the full Dubai Loop is projected at roughly $545 million.
The financing marks a major scale-up for The Boring Company. Beyond the UAE, the company says the money will support additional hiring and its tunnel projects in Las Vegas and Nashville. The challenge now is execution: the 150-kilometre UAE expansion is dramatically larger than the operational network the company has built so far.