xAI said its products now reach about 600 million monthly active users across the X and Grok apps.
Elon Musk’s xAI has raised $20 billion in an upsized Series E funding round, exceeding its initial $15 billion target, as the company scales its AI infrastructure and product development.
The round attracted participation from Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, with strategic backing from NVIDIA and Cisco Investments.
“This financing will accelerate our world-leading infrastructure buildout and enable the rapid development and deployment of transformative AI products reaching billions of users,” xAI said in a statement.
The funding would comprise $7.5 billion in equity and $12.5 billion of debt in a special purpose vehicle to buy Nvidia processors, according to reports.
The company said the capital will be used primarily to expand its compute capacity and support research tied to its mission of “understanding the universe.” xAI operates large AI supercomputing facilities—Colossus I and II—to train AI models like Grok, and ended 2025 with more than one million H100 GPU equivalents in operation.
xAI said 2025 marked a year of operational progress, including advances in its Grok family of models. The company highlighted Grok 4, trained using reinforcement learning at scale, and Grok Voice, a voice-based AI agent now available through APIs, the Grok mobile app, and in Tesla vehicles. xAI also said its products now reach about 600 million monthly active users across the X and Grok apps.
The company is also developing Grok Imagine, which supports image and video generation, and continues to integrate Grok more deeply into the X platform to enable real-time understanding of events. xAI confirmed that Grok 5 is currently being trained.
The funding comes after the company raised around $6 billion in a Series C in late 2024 to support its initial model development and infrastructure buildout. This was followed by $5.3 billion in equity and debt in 2025. According to Tracxn, and with the latest round, xAI’s total haul now exceeds $37 billion.
Recently, xAI and its Grok models have also faced scrutiny as Grok’s image generation features drew criticism after users reported the creation of images depicting women in a sexualized or inappropriate manner.
xAI said it was working to improve safeguards and content controls around its generative models.
Alongside the funding announcement, xAI said it is hiring across research, engineering and infrastructure roles. “We are seeking mission-oriented individuals ready to join a small team focused on making a transformational impact,” the company said, directing applicants to its careers page.
xAI plans to launch new consumer and enterprise products built on Grok, its Colossus infrastructure and the X platform in the coming months.
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