Elon Musk-founded AI company, xAI, has successfully closed an oversubscribed $20 billion Series E funding round. This round, which exceeded its original target of $15 billion, values the company at over $200 billion, positioning it as a leading player in the competitive AI landscape.
The investment round saw participation from a range of investors, including Valor Equity Partners, StepStone Group, Fidelity Management & Research Company, the Qatar Investment Authority, and Abu Dhabi-based MGX. Nvidia and Cisco Investments joined as strategic investors supporting the company’s massive compute infrastructure expansion.
xAI’s products, mainly the Grok AI assistant integrated with the X platform, have approximately 600 million monthly active users.
xAI said the proceeds from the funding round will be used to accelerate the buildout of its “Colossus” supercomputers, which are primarily used for training and improving the company’s large language models (LLMs) like Grok.