Elon Musk’s AI company, xAI, has closed a $20 billion Series E funding round, surpassing its original $15 billion target. Investors include Valor Equity Partners, Fidelity, the Qatar Investment Authority, and strategic partners NVIDIA and Cisco. The funds will be used to expand infrastructure, develop new consumer and enterprise products, and advance research.
The company operates what it claims are the world’s largest AI supercomputers, Colossus I and II, with over one million H100 GPU equivalents. xAI is currently developing Grok 5, the next generation of its AI model series, building on its current Grok platform, which includes chat, voice, and image/video generation features, News.Az reports, citing foreign media.
Founded to create a “truth-seeking” AI system, Grok has faced criticism for being politically biased and generating controversial content, including antisemitic remarks. The platform has also allowed users to manipulate images in ways that sparked significant ethical concerns.
Despite the controversies, xAI reports around 600 million monthly active users across its platforms and continues to position itself as one of the best-funded AI startups globally. Its latest financing round likely pushes the company’s valuation well beyond the initially proposed $230 billion.
The move underscores Musk’s ambition to scale xAI’s technology and expand its influence in the AI landscape, while continuing to navigate challenges related to content moderation and political bias.