Elon Musk’s tunnel construction company, The Boring Company, has raised $3 billion (£2.3 billion) in fresh funding at a valuation of $23 billion, in a deal led by the United Arab Emirates and affiliated investment groups.
The fundraising was announced in a statement on Wednesday. Other investors included Human Capital, Vy Capital, Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, Temasek, Shamal Holding and Baron Capital.
The company said the proceeds would support an expanded partnership to develop more than 150km (93 miles) of underground infrastructure across the UAE, building on its Dubai Loop project.
The new capital will also be used to increase hiring in engineering, production and operations, while expanding Loop projects in Dubai, Las Vegas and Nashville.
The Boring Company expands Dubai Loop plans
The Boring Company and Dubai’s Roads and Transport Authority signed an agreement in February to begin implementing the Dubai Loop passenger tunnel project.
The company’s website says the first phase will involve a 6.4km tunnel with four stations linking the Dubai International Financial Centre and Dubai Mall. Construction is expected to begin in late 2026.
The latest funding marks a substantial rise in The Boring Company’s valuation. It was valued at about $5.7 billion after raising $675 million in 2022.
Musk founded the company in 2017 after complaining about traffic congestion and proposing underground transport routes. It currently operates the Vegas Loop and is developing a further system in Nashville.
