Elon Musk's Boring Company closed a $3 billion funding round led by the United Arab Emirates and affiliated investment entities, according to an announcement on September 10. The round values the tunneling startup at $23 billion post-money.
Sequoia Capital, Andreessen Horowitz, and Temasek participated in the syndicate alongside the UAE investors. The funding comes as Boring Company is planning 150 kilometers of tunnels in the UAE, according to Gulf News.
Boring Company was founded in 2016 to build underground transportation tunnels using horizontal drilling technology. The firm completed a 1.14-mile test tunnel beneath Los Angeles in 2018 and has since secured contracts for tunnel projects in Las Vegas and other U.S. cities. Its tunnels are designed to move both vehicles and pedestrians at speed through underground routes.
The $23 billion valuation comes after previous funding rounds valued the company substantially lower. In 2021, Boring Company raised $515 million at a $5.5 billion valuation. A 2023 round valued the company at approximately $15 billion, according to available records. The current round values Boring Company at $23 billion.
UAE-based investors have accelerated capital deployments across transportation and infrastructure technology in recent years. The country has positioned itself as a hub for autonomous vehicles and emerging transit systems. Boring Company has secured this round from UAE entities alongside major U.S. venture firms.
The company's revenue model depends on contracts with municipalities and private developers to construct and operate tunnels. Profitability remains undemonstrated at scale. Boring Company has not disclosed construction timelines or financial terms for its UAE project.
If Boring Company begins active tunnel construction in the UAE within 12 months of this funding close, it will mark the firm's first large-scale deployment outside North America.
