Funding round exceeds target and will support the expansion of AI infrastructure and products

xAI, the artificial intelligence company led by Elon Musk, announced that it completed an upsized Series E funding round, raising $20 billion, exceeding its originally targeted $15 billion.

The Series E round included investments from Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group. Strategic investors in the financing included NVIDIA and Cisco Investments, who the company said will support scaling compute infrastructure and building large graphics processing unit (GPU) clusters.

According to the press release, the funds will be used to expand xAI’s data center capacity, support the development of advanced AI products, and advance research initiatives. xAI noted in the announcement that its Colossus supercomputers now include more than one million Nvidia H100 GPU equivalents and that its Grok 5 model is currently in training.

xAI said the financing “will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products reaching billions of users, and fuel groundbreaking research advancing xAI’s core mission: Understanding the Universe.”

The company’s Grok product suite and compute infrastructure expansion were both highlighted in the announcement as priorities for capital deployment.