Elon Musk’s xAI Raises $20B; Valuation Still Undisclosed Now

Elon Musk’s xAI Secures $20 Billion in Series E, Surpassing Its Fundraising Target

  • xAI raised $20 billion in an upsized Series E, surpassing a prior $15 billion target.
  • Investors in the round include Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX and Baron Capital Group.
  • The company did not disclose a valuation; an earlier CNBC report said the round could value the startup near $230 billion.
  • xAI expanded data-center capacity to one million H100 GPU equivalents, advanced its Grok 4 frontier models, and bought five 380MW natural gas turbines to power new sites.
  • xAI is expanding its Colossus data center campus in Memphis and developing a second site, Colossus 2, on a 186-acre parcel in South Memphis; retail sentiment on the news trended bullish.

xAI, the Artificial Intelligence firm led by Elon Musk, has raised $20 billion in an upsized Series E funding round, the company said recently, as investors continue to back AI startups. The firm did not disclose the valuation for the raise, though an earlier CNBC report indicated the financing could value the startup at about $230 billion.

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The $20 billion raise exceeded a prior target of $15 billion and included participation from investors such as Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX and Baron Capital Group, the company said in a blog post. The firm said the funding will accelerate its infrastructure buildout and support rapid product development.

Operationally, xAI has expanded its data centers to hold one million H100 GPU equivalents and reported advances in its Grok 4 series frontier language models. The company also acquired five 380MW natural gas turbines to supply power for upcoming data centers equipped with top-line NVIDIA processors.

The firm is expanding its main Colossus campus in Memphis, Tennessee, and is building a second site, Colossus 2, on a 186-acre parcel in South Memphis. Company statements said the financing will enable faster deployment of transformative AI products and infrastructure.

The fundraising comes amid large capital allocations across the AI sector: OpenAI closed a $6.6 billion share sale at a $500 billion valuation, and rival Anthropic raised capital at a $350 billion valuation with backing from Microsoft and Nvidia. Retail sentiment around xAI trended “bullish” with normal message volume on investor forums.

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