Elon Musk’s xAI Raises $20 Billion in Funding From Nvidia, Cisco, Fidelity and More
xAI over-raised its upsized Series E base, surpassing the target round size of $15 billion, and raised $20 billion. Some of the investors who are a part of the round are Valor Equity Partners, Stepstone Group, Fidelity Management and Research Company, Qatar Investment Authority, and MGX, as well as Baron Capital Group among other significant investors. Round strategic investors such as NVIDIA and Cisco Investments remain committed to supporting xAI in scaling our compute infrastructure and constructing the largest GPU clusters in the world fast.
In November, CNBC also said that the artificial intelligence start-up would be financed at approximately 230 billion. Musk, in a post on X, responded to a published story stating that xAI was raising $15 billion by calling the story false.
Both Cisco and Nvidia are vendors and strategic partners of xAI.
By 2025, AI startups had been worth sky-high sums and had raised enormous sums of capital to drive indefinite demand for their underlying models. In October, OpenAI raised a sale of shares worth 6.6 billion dollars at a value of 500 billion, and a month later Anthropic was estimated to be worth some 350 billion, with money raised by Microsoft and Nvidia.
After merging with the company, which was previously called Twitter, back in March, Musk owns and operates his social network X under the new name of the AI venture.
It was a year of momentum of breakthrough, during which the xAI team achieved numerous significant initiatives, such as:
Data Centers: xAI has expanded its decisive compute power with the largest AI supercomputers on the globe, Colossus I and II, and over one million H100 GPU equivalents at the end of the year.
Grok 4 Series: Based on the industry-leading training infrastructure, which runs on Colossus, xAI has taken the training of Grok to new levels, improving the intelligence, reasoning, and agency capabilities of Grok with training at scale comparable to that of pretraining.
Grok Voice: The brightest voice agent that runs live conversation in the voice mode and can be accessed through agent API. Grok Voice provides low-latency speech in dozens of languages, tool calling, and real-time data access, which serve millions of customers in the Grok mobile app and in Tesla vehicles.
User metrics: They have an approximate reach of 600 million monthly active users on the 𝕏 and Grok apps.
Grok Imagine: Our high-speed models of image and video generation introduce state-of-the-art multimodal understanding, editing, and generation functionality.
Grok on 𝕏: Using the 𝕏 platform to see what is going on in the world in real-time, exploiting the most powerful model in xAI so far.
Looking forward, Grok 5 is in training, and xAI is looking forward to introducing new innovative consumer and enterprise products that embrace the power of Grok, Colossus and 0 to change the way we live, work and play.
The company is again under the fire of regulatory investigations by regulators in Europe, India, and Malaysia, as its Grok chatbot created sexualised pictures of children and non-consensual intimate pictures of adults, mainly women. The users posted the photos extensively on X.
Musk is focusing on the infrastructure construction of xAI in Memphis, Tennessee. According to local researchers, the data centres powered by natural gas-burning turbines have elicited consternation among a large number of the local residents, with air quality issues in the area being caused by the emissions.
It was controversial, but xAI has concluded an agreement with the Department of Defence that recently implemented Grok to its AI agents platform. Grok is also the primary prediction betting chatbot on Polymarket and Polymarket chatbot Kalshi.
