SANTA CLARA (dpa-AFX) - Elon Musk's artificial intelligence firm xAI announced that it has raised $20 billion in upsized Series E funding round, exceeding the $15 billion targeted round size, with backing from AI chip major Nvidia Corp. and Qatar.
The company, which aims to rapidly accelerating its progress in building advanced AI, expects the financing to support infrastructure buildout, and to enable the rapid development and deployment of transformative AI products reaching billions of users. The funding will also fuel groundbreaking research advancing xAI's core mission, which is Understanding the Universe.
The company has raised the funds from investors Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, Baron Capital Group, amongst other key partners.
NVIDIA and Cisco Investments, strategic investors in the round, continue to support xAI in rapidly scaling its compute infrastructure and buildout of the largest GPU clusters in the world.
The AI startup noted that it advanced a multitude of key initiatives in 2025, including Data Centers, Grok 4 Series, Grok Voice, User metrics, Grok Imagine, and Grok on ??.
xAI continues to expand its decisive compute advantage with the world's largest AI supercomputers at Colossus I and II, ending the year with over one million H100 GPU equivalents.
Grok 5 is currently in training, and the firm is focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and ??.
The firm added that it is hiring aggressively and seeks mission-oriented individuals to focus on making a transformational impact on the future of humanity.
Media reported recently that the latest expanded funding round includes both equity and debt, with Nvidia contributing up to $2 billion to the equity portion of the deal. The deal was said to be structured through a special purpose vehicle designed to acquire Nvidia processors and lease them to xAI. These chips will power xAI's Colossus 2 initiative-its largest data center located in Memphis.
Recently, xAI and Musk's social media platform X filed a lawsuit against Apple and OpenAI in U.S. federal court in Texas, accusing them of colluding to block competition in the fast-growing AI sector.
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