Elon Musk’s Boring Company has raised $3 billion in a UAE-led funding round, valuing the tunneling startup at $23 billion.

The round was led by the United Arab Emirates and entities linked to it. Several other big names joined in as well.

These include Vy Capital, Sequoia Capital, Andreessen Horowitz, Temasek, Human Capital, Valor Equity Partners, Shamal Holding and Baron Capital.

This isn’t the company’s first project in the region. Boring Company already has an agreement with Dubai’s Roads and Transport Authority to build the Dubai Loop, an underground high-speed transport network.

This new funding adds to that existing partnership rather than starting something new from scratch.

With the fresh capital, the company plans to build more than 150 kilometres of tunnels across the UAE.

That’s a big jump in scale from where the company stood not too long ago, when it operated just a single working Loop system.

The funds won’t stay limited to the Middle East, though. Part of the money will go toward existing Loop projects in Las Vegas and Nashville, alongside continued work in Dubai.

Boring Company also plans to hire more people across its engineering, production and operations teams to keep up with this expansion.

A big part of what’s helping the company move faster is its own tunnelling technology.

It uses machines called Prufrock, combined with autonomous construction systems, to dig through both soft soil and hard rock.

According to the company, this setup speeds up tunnel construction and cuts down the need for the traditional launch infrastructure most tunnelling projects rely on.

To put the new valuation in context, Boring Company was worth $5.7 billion back in 2022, following a $675 million raise at that time.

Going from $5.7 billion to $23 billion in roughly four years shows how much investor interest has grown around underground transport infrastructure, especially in fast-developing regions like the UAE.

Musk started the company in 2016, with the original idea of tackling traffic congestion by moving transport underground. Almost a decade later, that idea now spans multiple cities and continents.

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