Musk's XAI completes $20 billion funding round to build AI infrastructure

Elon Musk's xAI announced Tuesday that it has raised $20 billion in an expanded Series E funding round, exceeding its initial goal of $15 billion, as it accelerates its efforts in advanced artificial intelligence.

The company said investors in the round include Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX and Baron Capital Group. Strategic investors include Nvidia and Cisco Investments, which xAI said are helping it build out its large-scale computing infrastructure.

The company said the funds will be used to expand its AI infrastructure, develop AI products, and advance research.

xAI announced it ended 2025 with more than 1 million H100 GPU equivalents across its Colossus I and II supercomputers.

This round of funding comes nearly a year after Elon Musk announced that xAI had acquired social media platform X in an all-stock deal.

“This combination values ​​xAI at $80 billion and X at $33 billion ($45 billion minus $12 billion in debt),” Musk wrote about X when announcing the deal in March 2025.

Since then, xAI has utilized X as the delivery and data engine for Grok. Grok is the company's flagship AI model and also the name of its chatbot.

Musk told employees at an all-hands meeting last year that xAI's access to capital would give it an advantage in the AI ​​race. He also said the ability to expand data capacity is critical to helping achieve superintelligence.

The company said in a release that Grok 5 is currently in training and new products are planned for both consumers and businesses.

xAI said it is actively hiring as it scales and is positioning the new capital to fuel infrastructure, product launches, and long-term research related to the company's stated mission to understand the universe.