Musk’s xAI completes a larger Series E financing round, raising $20 billion
Elon Musk’s artificial intelligence startup xAI revealed on Tuesday that it has successfully raised $20 billion in an expanded Series E funding round, surpassing its initial target of $15 billion as it accelerates the development of new AI models and computing infrastructure.
xAI announced that Valor Equity Partners, StepStone Group, Fidelity Management & Research Company, and Qatar Investment Authority took part in the funding round.
Nvidia (NVDA.O) has opened a new tab, with Cisco Investments joining as strategic investors. xAI stated that their support would aid in expanding computing capacity.
In response to an email inquiry from Reuters, xAI stated, ‘Legacy Media Lies.’
xAI, currently in the process of training its next-generation Grok 5 model, announced that it will utilize the new funding to enhance infrastructure, accelerate the development and deployment of AI products, and support research initiatives.
Investor interest in AI deals remains robust, even amid cautionary signals of a potential bubble, as companies invest significantly in computing power and innovative models.
xAI has swiftly increased its data-center presence to develop more sophisticated systems in an effort to catch up with OpenAI’s ChatGPT and Alphabet’s Gemini.
