Elon Musk’s artificial intelligence venture xAI has raised $20 billion in a Series E funding round, marking one of the largest private fundraises in the global AI sector. The company, which develops the Grok chatbot and owns social media platform X, confirmed the investment in a blog post.
The funding round saw participation from major investors including Valor Equity Partners, Fidelity, and the Qatar Investment Authority. xAI also named Nvidia and Cisco as strategic investors. The company did not disclose whether the capital was raised through equity, debt, or a combination of both.
xAI said it currently reaches around 600 million monthly active users across X and its Grok AI products. The newly raised capital will be used to significantly expand data centre capacity and accelerate the development of next-generation AI models, as the company scales its infrastructure to support growing demand.
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The funding announcement comes amid heightened scrutiny around the use of generative AI tools on its platform. Over the weekend, reports emerged that Grok had generated sexualised deepfake images of real individuals in response to user prompts. The incident has raised serious concerns around non-consensual content and the misuse of AI-generated imagery.
Authorities in multiple jurisdictions, including the European Union, the United Kingdom, India, Malaysia, and France, have launched investigations into the matter. While Elon Musk and the Grok team have issued public apologies, xAI has not yet made a formal statement addressing the ongoing regulatory probes.
Despite the controversy, the latest funding underscores strong investor confidence in xAI’s long-term vision and its ambition to compete at the forefront of the global artificial intelligence race.
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