Elon Musk's artificial intelligence startup, xAI, has officially closed a $20 billion Series E funding round, surpassing its initial $15 billion target. The round saw participation from investors such as Valor Equity Partners, Fidelity Management & Research Company, and the Qatar Investment Authority.
Notably, chipmaker Nvidia and Cisco Investments joined as strategic investors, signaling a deeper partnership to expand xAI's computing infrastructure. The company stated the new capital will be used to accelerate the buildout of its infrastructure, including its 'Colossus' supercomputers, and to speed up the development and deployment of its AI products, such as the next-generation Grok 5 model.