Musk’s xAI secures $20bn in Series E funding round

Elon Musk’s xAI has raised $20bn successful a Series E backing round, surpassing its earlier people of $15bn.

The funds volition enactment the improvement of AI models and computing infrastructure, arsenic good arsenic probe initiatives.

The financing circular saw information from Valor Equity Partners, StepStone Group, Fidelity Management & Research Company, and Qatar Investment Authority. Nvidia and Cisco Investments besides joined arsenic strategical investors, which xAI stated would assistance heighten its computing capabilities.

The caller concern comes arsenic xAI prepares to bid its next-generation Grok 5 model. The institution plans to utilise the superior for infrastructure enlargement and faster AI merchandise deployment.

Despite an archetypal study suggesting xAI was raising $15bn, Musk past denied this assertion connected X, antecedently known arsenic Twitter.

Nvidia and Cisco besides play roles arsenic vendors and strategical partners with xAI.

Despite caller controversies surrounding its Grok chatbot, which led to regulatory investigations successful Europe, India, and Malaysia owed to inappropriate contented generation, xAI has continued to expand.

The institution precocious secured a declaration with the US Department of Defense, wherever Grok has been added to its AI agents platform. The AI exemplary is besides utilized successful prediction betting platforms specified arsenic Polymarket and Kalshi.

The planetary request for AI ventures remains precocious contempt warnings of a imaginable marketplace bubble. In 2025, AI startups experienced soaring valuations, with OpenAI reaching a valuation of $500bn aft a stock sale, portion Anthropic was valued astatine astir $350bn with backing from Microsoft and Nvidia.

xAI is besides expanding its information centres successful Memphis, Tennessee. This enlargement aims to assistance the institution drawback up with competitors similar OpenAI's ChatGPT and Alphabet's Gemini.

In July 2025, reports indicated that xAI was seeking a valuation betwixt $170bn and $200bn for its adjacent backing round.

Previously, successful June 2025, Morgan Stanley revealed xAI had obtained $5bn done indebtedness issuance matched by an adjacent magnitude successful strategical equity concern to further bolster its infrastructure amid increasing assemblage competition.

In aboriginal 2025, xAI completed the acquisition of Musk’s societal media level X. This merger has facilitated the integration of xAI’s Grok chatbot into applications specified arsenic Starlink enactment and perchance into Tesla’s Optimus robots.

"Musk’s xAI secures $20bn successful Series E backing round" was primitively created and published by Verdict, a GlobalData owned brand.

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