Elon Musk’s artificial intelligence startup xAI announced Tuesday it has successfully raised $20 billion in an upsized Series E funding round, surpassing its initial $15 billion target as the company accelerates development of advanced AI models and computing infrastructure.

The funding round attracted prominent investors including Valor Equity Partners, StepStone Group, Fidelity Management & Research Company, and Qatar Investment Authority. Strategic technology investors NVIDIA and Cisco also participated, alongside sovereign wealth funds from Abu Dhabi and Qatar, and Baron Capital Group.

While xAI has not disclosed its exact valuation, earlier reports suggested the financing would value the startup at approximately $230 billion, making it one of the most valuable AI companies globally.

The capital infusion will primarily fund the buildout of Colossus I and II supercomputers, already powering over one million H100 GPU equivalents, positioning them among the most powerful AI computing clusters worldwide. The company is currently training its next-generation Grok 5 model and plans to use the new funding to build additional infrastructure, accelerate product development and deployment, and support ongoing research initiatives.

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xAI claims approximately 600 million monthly active users across its X platform and Grok combined, demonstrating significant market reach. The massive funding round reflects sustained investor confidence in AI technology despite concerns about market valuations, as companies continue investing heavily in computing power and advanced model development.

The successful raise underscores xAI’s ambition to compete directly with established AI leaders while expanding its global computing capabilities.

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