xAI Secures $20 Billion Funding Round Led by Nvidia and Major Investors
Elon Musk's artificial intelligence venture xAI has closed a $20 billion Series E funding round, surpassing its initial $15 billion target. The investment consortium includes industry heavyweights Nvidia and Cisco, alongside Fidelity, Qatar Investment Authority, and Valor Equity Partners.
The financing values the AI startup at approximately $230 billion, cementing its position among the world's most valuable artificial intelligence companies. Strategic investor Nvidia will collaborate on building what xAI describes as "the largest GPU clusters in the world."
Proceeds will accelerate infrastructure expansion, development of the Grok 5 AI system, and computing capacity at xAI's Memphis data centers. The funding follows xAI's March merger with social media platform X (formerly Twitter) and a recent Department of Defense contract win.
