xAI, Elon Musk’s AI Venture, Secures Record $20 Billion for AI Expansion
Elon Musk’s artificial intelligence company, xAI, has successfully completed a massive $20 billion Series E funding round. This achievement surpasses its initial $15 billion target and sets a new record as one of the largest AI funding rounds in history. The announcement was made on January 6, 2026, marking a significant milestone in the company’s aggressive competition with industry leaders like OpenAI and Anthropic.
The investment round saw participation from heavyweight investors such as Valor Equity Partners, StepStone Group, Fidelity Management & Research Company, and the Qatar Investment Authority. Strategic partners NVIDIA and Cisco Investments also joined the round, providing critical support for xAI’s ambitious computing infrastructure expansion.
The raised funds will fuel the expansion of xAI’s Colossus supercomputer cluster in Memphis, Tennessee. The cluster ended 2025 with over one million H100 GPU equivalents. The company is currently training Grok 5, its next-generation AI model. It also plans to roll out innovative consumer and enterprise products that leverage the power of its infrastructure and integration with the X platform. xAI gained ownership of the X platform following a merger in March 2025.
The funding announcement comes amidst a mix of excitement and controversy. While xAI boasts 600 million monthly active users across X and the Grok app, it also faces regulatory scrutiny from authorities in Europe, the UK, India, Malaysia, and France. The controversy revolves around content moderation issues with its image generation capabilities.
Source: https://x.ai/news/series-e