Elon Musk’s artificial intelligence company, xAI, has raised $20 billion in an expanded Series E funding round, surpassing its original $15 billion target as it accelerates the development of advanced AI infrastructure.
The company announced Tuesday that the round attracted major investors including Valor Equity Partners, StepStone Group, Fidelity Management & Research Company, the Qatar Investment Authority, MGX, and Baron Capital Group. Strategic backers Nvidia and Cisco Investments are also participating, supporting xAI’s large-scale compute infrastructure buildout.
xAI said the new capital will be used to expand AI infrastructure, develop new AI products, and advance long-term research initiatives. By the end of 2025, the company reported operating more than one million H100 GPU equivalents across its Colossus I and II supercomputers.
The funding comes nearly a year after Musk revealed that xAI had acquired social media platform X in an all-stock transaction. At the time, Musk said the deal valued xAI at $80 billion and X at $33 billion, factoring in $12 billion in debt.
Since the acquisition, xAI has increasingly leveraged X as both a data and distribution platform for Grok, its flagship AI model and chatbot. Musk previously told employees that xAI’s access to capital and ability to rapidly scale data capacity would be key advantages in the race toward superintelligence.
The company also confirmed that Grok 5 is currently in training, with new consumer and enterprise products planned. xAI said it is hiring aggressively, positioning the funding as fuel for infrastructure expansion, product launches, and long-term research aligned with its mission to better understand the universe.
Source: businessinsider Edited by Bernie
