Musk's company will accelerate construction of underground tunnels after attracting $3 billion in investment
Elon Musk's tunneling company The Boring Company has raised $3 billion in a Series D funding round. As a result of the deal, the startup was valued at $23 billion - more than four times higher than in the previous major round in 2022.
The Boring Company announced the new funding. Bloomberg also highlighted the deal as one of the largest new rounds among Musk's private companies.
The round was led by the United Arab Emirates and related investment structures. Other participants include Human Capital, Vy Capital, Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, Temasek, Shamal Holding and Baron Capital.
The company plans to use the raised funds to expand its engineering workforce and production capacity, develop its Prufrock tunnel boring machines and scale underground transportation systems.
The main projects include the Vegas Loop in Las Vegas, the Music City Loop in Nashville and the Dubai Loop. Separately, the company has agreed on a significant expansion of cooperation with the UAE, which involves the construction of more than 150 km of underground infrastructure. This plan is not part of the already signed Dubai Loop contract.
Company valuation grew more than fourfold
The Boring Company conducted its previous major investment round in 2022. At that time, it raised $675 million and was valued at $5.675 billion. Thus, over four years, Musk's tunneling business's valuation increased about fourfold - to $23 billion.
Over the past two years, the company has transitioned from operating a single transportation system in Las Vegas to simultaneously implementing projects in several U.S. cities and abroad.
In Las Vegas, the Vegas Loop network has already transported over 4 million passengers. The Clark County authorities approved further expansion of the system to 123 stations, and The Boring Company states that it has already begun boring its 25th tunnel overall.
Musk expands tunnel business in the Middle East
One of the key international directions has been Dubai. In February 2026, The Boring Company and Dubai's Roads and Transport Authority concluded a final agreement for the construction of the Dubai Loop.
The first phase involves the construction of 6.4 km of tunnels and four stations between Dubai International Financial Centre and Dubai Mall. Its cost is estimated at approximately $154 million.
In the future, the Dubai Loop is planned to be expanded to 22.5 km and 19 stations. The full system should connect the Dubai World Trade Centre area and the financial center with Business Bay. The estimated cost of the entire project is $545 million.
In addition to this contract, the new UAE investments are expected to help The Boring Company create more than 150 km of additional tunnels in the country. This large-scale plan was one of the main components of the new funding round.
The Boring Company bets on its own Prufrock machines and automation of tunnel boring. The company claims that the new generation of equipment can start without traditional large launch pits, and part of the construction processes is already managed remotely from a center in Texas.
Sources: The Boring Company, Bloomberg, The Boring Company
