Elon Musk’s xAI Raises $20B In Series E Funding Round, Exceeds Its Own Target

• The funding exceeded its prior target of $15 billion.
• Investors participating in the round include Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, among others. 
• CNBC earlier had reported that the financing will value the startup at about $230 billion.

Elon Musk’s artificial intelligence startup xAI has raised $20 billion in an upsized series E funding round, exceeding its prior target of $15 billion as investors continue to pour money in AI startups.

Investors participating in the round include Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX and Baron Capital Group, amongst other key partners, the firm said in a blogpost. 

The company, however, did not disclose the valuation at which it has raised the funding. CNBC earlier had reported that the financing will value the startup at about $230 billion. 

The funding comes at a time when the company has expanded its data centers which now contains one million H100 GPU equivalents. It also advanced its Grok 4 series frontier language models. 

Elon Musk’s xAI has acquired five 380MW natural gas turbines to power the company’s upcoming data centers fitted with top-of-the-line Nvidia processors.

xAI, the umbrella firm for Musk’s AI and social media ventures, is expanding its mainstay data center campus, Colossus, in Memphis, Tennessee. Last year, Musk announced a second site, Colossus 2, in South Memphis, that is being built on a 186-acre land parcel.

This financing will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products, the blogpost added. 

Big Capital Allocations Towards AI Capabilities. 

Firms across sectors are pouring billions of dollars in their AI capabilities in fear of falling behind. OpenAI has signed deals with several giants like Amazon, Disney and Nvidia. Meanwhile, Meta has also acquired AI startups as well as signed multi-billion agreements with Coreweave and Oracle. 

AI startups have rode the wave of rising demand to ramp up AI capabilities by raising a huge amount of money in 2025. In October, OpenAI closed a $6.6 billion share sale at a $500 billion valuation. Its rival Anthropic also raised capital at $350 billion with capital from Microsoft and Nvidia. 

How Did Stocktwits Users React?

Retail sentiment around xAI trended in ‘bullish’ territory amid ‘normal’ message volume. 
 

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