xAI closes $20 billion Series E round with global investor participation

New Delhi: xAI has completed its Series E funding round, raising $20 billion after exceeding its initially targeted $15 billion round size. The financing attracted participation from investors including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX and Baron Capital Group.

Strategic investors in the round include NVIDIA and Cisco Investments, which are supporting the company’s expansion of its computing infrastructure and large-scale GPU clusters.

According to the company, 2025 marked a period of accelerated development across several areas, including data centre expansion and model training. xAI said it now operates AI supercomputers at its Colossus I and II facilities, with more than one million H100 GPU equivalents deployed by the end of the year.

The company has continued work on its Grok model series, including Grok 4, which has been trained using large-scale reinforcement learning methods. xAI has also expanded the availability of Grok Voice, its voice-based conversational system, across mobile applications and Tesla vehicles.

xAI reported that its combined reach across the x platform and Grok applications stands at approximately 600 million monthly active users. Additional product developments include Grok Imagine, focused on image and video generation, and deeper integration of Grok models with the x platform to process real-time information.

The company confirmed that Grok 5 is currently in training. Proceeds from the funding round will be used to support infrastructure expansion, product development across consumer and enterprise use cases, and ongoing research activities.