Elon Musk’s tunneling company, The Boring Company, has raised $3 billion in a Series D funding round, bringing its valuation to $23 billion.
The round was led by the United Arab Emirates. The company said it plans to dig more than 150 kilometers of tunnels in the Middle Eastern country. Other investors include Andreessen Horowitz, Sequoia Capital, Human Capital, Vy Capital and Valor Equity Partners.
The funds will also be used to hire employees across engineering, production and operations, expand Loop projects in Las Vegas and Nashville, and further develop the company’s Prufrock tunnel-boring machines.
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The Boring Company has done most of its tunneling to date in Las Vegas, Nevada, where it operates several tunnels connecting hotel casinos and the convention center. It recently began work on a project in Nashville, Tennessee, that will involve a 10-mile underground “loop.”
The Boring Company signed a definitive agreement with Dubai’s Roads and Transport Authority to begin construction of the Dubai Loop, an underground passenger transportation system, at the World Governments Summit 2026.
The first phase covers a 4-mile pilot route with four stations connecting the Dubai International Financial Centre and Dubai Mall, at an estimated cost of $154 million. The full route would extend up to 14 miles and include 19 stations, at a total estimated cost of $545 million, the company said.
The company also said that manufacturing of precast tunnel segments for the Dubai pilot has begun, with active tunneling expected to begin in the latter part of 2026. A preliminary agreement to study the project was signed at the World Governments Summit in 2025.
The Wall Street Journal reported in July that The Boring Company was seeking to raise as much as $4 billion. According to Electrek, the company has announced roughly a dozen city projects since its founding, but Las Vegas is the only one currently carrying passengers.
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Musk founded The Boring Company in 2017. Musk has described the company’s mission by saying, “Defeating traffic is the ultimate boss battle. Even the most powerful humans in the world cannot defeat traffic.”
The company has said its goal is to “solve traffic” by moving vehicle travel into an underground, three-dimensional network of tunnels.
The latest fundraising marks a sharp increase in the company’s valuation from 2022, when it was valued at $5.7 billion following a $675 million funding round.