Elon Musk’s XAI said it raised $20 billion in a Series E funding round, exceeding its original target of $15 billion.
Valor Equity Partners, Stepstone Group, Fidelity Management & Research Co., Qatar Investment Authority, Abu Dhabi’s MGX and Baron Capital Group, as well as strategic partners Nvidia and Cisco Investments were also among the backers.
company Said A post on the XAI website said it will use the latest investment to continue rapidly building out its compute infrastructure and GPU clusters.
It celebrated 2025 as a year of “breakthrough momentum”, highlighting the continued development of the AI supercomputer at Colossus I and II in South Memphis, Tennessee, which ended the year with more than one million H100 GPU equivalents.
With the fourth generation, Grok Frontier has been central to the development of the language model xAI Released last July And the company is already working on Grok 5.
The growth has also been reflected in the company’s expanding reach, with XAI now claiming 600 million monthly users across X, formerly Twitter, and the Grok app.
However, the latest funding announcement comes at a time of growing concern about how Grok is being used, particularly its image generation model.
After facing a storm last year after creating anti-Semitic content on X, Grok has recently come under fire for allowing users to create non-consensual sexual images of women and children. UK and this European Union One of the leaders is threatening action if xAI doesn’t fix the problem. Musk, XAI Founder, Said On X: “Anyone using Grok to create illegal content will face the same consequences as those who upload illegal content.”
Just before this latest controversy surfaced, the company to make a deal In December, with the US Department of Defense, xAI’s Frontier AI system based on the Grok model will be added to its GenAI.mil platform.
