How much funding did Elon Musk's xAI raise?

xAI raised $20 billion in its latest funding round.

Who are the strategic investors in xAI?

Nvidia and Cisco Investments joined xAI as strategic investors.

What will xAI use the new funding for?

The funds will support development of new AI models, computing infrastructure, and product deployment.

Home / Business and Economy / Musk's xAI Raises $20B, Eyes AI Supremacy

Musk's xAI Raises $20B, Eyes AI Supremacy

7 Jan

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Summary

xAI secured $20 billion in funding, surpassing its target.
Nvidia and Cisco Investments joined as strategic investors.
Funds will accelerate development of new AI models and infrastructure.

Musk's xAI Raises $20B, Eyes AI Supremacy

xAI, the artificial intelligence venture founded by Elon Musk, has announced a significant financial milestone, securing $20 billion in an upsized Series E funding round. This achievement surpasses the company's initial fundraising target of $15 billion, demonstrating robust investor confidence in its ambitious plans.

The newly acquired capital is earmarked for critical initiatives, including the expansion of computing infrastructure, the acceleration of AI model development, and the swift deployment of innovative AI products. Strategic investors such as Nvidia and Cisco Investments have joined the round, with their backing intended to bolster xAI's computing capacity.

This substantial investment comes as xAI trains its next-generation Grok 5 model and aims to narrow the competitive gap with established AI leaders like OpenAI and Alphabet. The company's aggressive expansion of its data-center footprint underscores its commitment to advancing AI capabilities.