Elon Musk’s artificial intelligence company xAI has secured one of the largest private funding rounds in technology history, signaling an aggressive escalation in the global race for frontier AI compute.
xAI announces that it completed an upsized Series E funding round, raising $20 billion, exceeding its original $15 billion target as demand from investors surged.
The round was backed by a mix of institutional and strategic capital, including Valor Equity Partners, StepStone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX and Baron Capital Group.
Strategic investors in the round include Nvidia and Cisco, underscoring the central role hardware and networking play in xAI’s expansion strategy.
The funding follows what xAI described as a year of “breakthrough momentum” in 2025, driven primarily by its rapid buildout of AI infrastructure. The company says it now operates the world’s largest AI supercomputers at its Colossus I and Colossus II data centers, ending the year with more than one million H100 GPU equivalents deployed.
Those systems underpin the Grok 4 series of frontier language models, which xAI says are trained on best-in-class infrastructure and use reinforcement learning at unprecedented scale to improve reasoning, intelligence, and agentic behavior.
xAI has also pushed Grok beyond text. Its Grok Voice product delivers low-latency, multilingual speech, real-time data access, and tool calling, and is already live across the Grok mobile app and inside Tesla vehicles. The company says the voice agent now serves millions of users.
On the multimodal front, xAI highlighted Grok Imagine, its image and video generation models designed for fast editing, generation, and multimodal understanding, alongside Grok’s deep integration into the X platform, where the model ingests real-time global information.
According to the company, xAI’s combined reach across X and Grok now spans roughly 600 million monthly active users, giving it one of the largest built-in distribution advantages in consumer AI.
Looking ahead, xAI confirms that Grok 5 is currently in training. The company says the newly raised capital will be used to accelerate the buildout of its supercomputer network, expand the largest GPU clusters in the world, and support the launch of new consumer and enterprise products built on Grok, Colossus and X.
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