xAI raises $20 billion to expand compute and research

Elon Musk’s artificial intelligence company xAI said on Tuesday that it had raised $20 billion from investors to fund its expansion in the race to train more capable chatbots. xAI said it had sought $15 billion but received additional commitments. Two people with knowledge of the matter said the investment could push xAI’s valuation above $230 billion, a level it was on track to reach when raising $15 billion.

The company, founded in 2023, said it would use the funds to “expand its decisive compute advantage,” build data centers and “fuel groundbreaking research.” Investors in the round included Fidelity, the Qatar Investment Authority, Valor Equity Partners and Nvidia. According to PitchBook, xAI has now raised more than $42 billion in total.

PitchBook also reported that nearly two-thirds of venture capital funding in the first nine months of 2025 went to A.I. companies, and that the three large foundational-model firms—OpenAI, Anthropic and xAI—have a combined private market value of nearly $1 trillion. xAI has developed a chatbot called Grok, which the article said has provoked outrage for praising Hitler, parroting Mr.

Musk’s personal views and generating nonconsensual nude images of women. xAI has said it will release a new model, Grok 5, early this year; Mr. Musk posted on X in October that the model had a 10 percent chance of reaching artificial general intelligence. Mr.

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Tech, Xai, Elon Musk, Grok, Nvidia, Fidelity