Elon Musk’s xAI said Tuesday that it raised $20 billion in an upsized Series E funding round, topping its original $15 billion target as it accelerates work on advanced artificial intelligence.
The company said investors in the round include Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, the Qatar Investment Authority, MGX, and Baron Capital Group. Strategic investors include Nvidia and Cisco Investments, which xAI said are supporting the buildout of large-scale compute infrastructure.
The funding will be used to expand AI infrastructure, develop AI products, and advance research, the company said.
xAI said it ended 2025 with more than 1 million H100 GPU equivalents across its Colossus I and II supercomputers.
The fundraising series comes nearly a year after Elon Musk announced that xAI had acquired social media platform X in an all-stock deal.
“The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt),” Musk wrote on X in March 2025 when announcing the deal.
Since then, xAI has leaned on X as a distribution and data engine for Grok, which is both its flagship AI model and the name of its chatbot.
Musk told employees at an all-hands meeting last year that xAI’s access to capital would be an advantage in the AI race. He also said that its ability to scale data capacity is critical to helping it reach superintelligence.
The company said in its release that Grok 5 is in training and that new products are planned for both consumers and businesses.
xAI said it is hiring aggressively as it scales, positioning the new funding as fuel for infrastructure, product launches, and long-term research tied to its stated mission of understanding the universe.
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