Musk's xAI secures $20 billion in expanded Series E fundraising

xAI Secures $20 Billion in Expanded Series E Funding

On Tuesday, Elon Musk's artificial intelligence company, xAI, revealed it has raised $20 billion in an enlarged Series E funding round—surpassing its original $15 billion goal. The additional capital will accelerate the creation of advanced AI models and bolster the company's computing infrastructure.

Key investors in this round include Valor Equity Partners, StepStone Group, Fidelity Management & Research Company, and the Qatar Investment Authority, according to xAI.

Strategic investments also came from Nvidia and Cisco Investments, whose support is expected to help xAI further expand its computing resources.

When Reuters reached out for a statement via email, xAI responded with the phrase, "Legacy Media Lies."

The company is currently working on training its next-generation Grok 5 model. The newly acquired funds will be used to enhance infrastructure, accelerate the rollout of AI products, and support ongoing research initiatives.

Despite concerns about a potential bubble, investor enthusiasm for AI ventures remains high, as organizations continue to invest heavily in computational power and innovative technologies.

xAI has quickly increased its data center capacity to develop more sophisticated AI systems, aiming to compete with OpenAI's ChatGPT and Alphabet's Gemini.

Reported by Prakhar Srivastava in Bengaluru; Edited by Tasim Zahid