Elon Musk’s xAI Raises $20 Bn in Upsized Series E to Scale Compute and AI Products
The company said the capital will be used primarily to expand compute capacity and support research aligned with its mission of “understanding the universe.”
Elon Musk’s artificial intelligence company xAI has raised $20 billion in an upsized Series E funding round, surpassing its original $15 billion target, as it ramps up infrastructure expansion and product development.
In November last year, The Left Shift reported that xAI was set to close a staggering $15 billion funding round in December 2025, a move that could value the company at roughly $230 billion pre-money — more than double its valuation earlier this year.
The round drew participation from Valor Equity Partners, StepStone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX and Baron Capital Group, with strategic backing from NVIDIA and Cisco Investments.
According to reports, the financing includes $7.5 billion in equity and $12.5 billion in debt, with the debt portion structured through a special purpose vehicle to acquire Nvidia processors.
“This financing will accelerate our world-leading infrastructure buildout and enable the rapid development and deployment of transformative AI products reaching billions of users,” xAI said in a statement.
The company said the capital will be used primarily to expand compute capacity and support research aligned with its mission of “understanding the universe.”
xAI operates large-scale AI supercomputing facilities, Colossus I and II, and said it ended 2025 with more than one million H100 GPU equivalents in operation to train models such as Grok.
The startup said 2025 marked significant operational progress, highlighting advances in its Grok family of models. These include Grok 4, trained using reinforcement learning at scale, and Grok Voice, a voice-based AI agent available via APIs, the Grok mobile app and Tesla vehicles.
It also said its products now reach around 600 million monthly active users across X and Grok applications.
xAI is also developing Grok Imagine for image and video generation and confirmed that Grok 5 is currently in training. The funding follows earlier raises of $6 billion in late 2024 and $5.3 billion in 2025, bringing total funding to more than $37 billion.
