xAI, the artificial intelligence company founded by Elon Musk and developer of the Grok chatbot, announced it has raised $20 billion in a Series E funding round, marking one of the largest AI financings to date. The company said the round includes participation from Valor Equity Partners, Fidelity, and the Qatar Investment Authority, with Nvidiaand Cisco joining as strategic investors. xAI did not disclose whether the funding was structured as equity or debt.
The company reported that X and Grok together reach approximately 600 million monthly active users and said the new capital will be used to expand data center capacity and further develop Grok’s AI models.
The announcement comes amid heightened scrutiny after Grok generated nonconsensual sexual content involving real individuals. xAI confirmed it is currently under investigation by authorities in the European Union, the United Kingdom, India, Malaysia, and France.
