xAI announced it has closed an upsized Series E funding round totaling $20 billion, surpassing its previously targeted $15 billion raise, as the company accelerates development of its AI models and the infrastructure behind them. The company said the financing included participation from Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, among other investors. And xAI added that NVIDIA and Cisco Investments joined as strategic investors, backing efforts to scale compute capacity and expand what it described as some of the world’s largest GPU clusters.
xAI said 2025 was a year of rapid progress across infrastructure, model development, and product expansion. The company said it is building around its Colossus I and II data center footprint and ended the year with more than one million H100 GPU equivalents. On the model front, xAI said its Grok 4 series was trained on Colossus and that it has intensified reinforcement-learning training to improve Grok’s reasoning and agentic capabilities using pretraining-scale compute.
The company also highlighted product updates tied to Grok, including Grok Voice, which it described as a low-latency voice agent supporting dozens of languages, tool calling, and real-time data access, with distribution across the Grok mobile app and Tesla vehicles. xAI said it has also developed Grok Imagine for fast image and video generation, and is integrating Grok more deeply on 𝕏 to interpret and respond to real-time events on the platform. In terms of scale, xAI said its combined reach across 𝕏 and Grok apps is about 600 million monthly active users.
Looking ahead, xAI said Grok 5 is currently in training, and that it plans to launch new consumer and enterprise products built on Grok, Colossus, and 𝕏. The company said the new capital will support continued infrastructure buildout, speed product development and deployment, and fund research aligned with its stated mission of “Understanding the Universe.” xAI also said it is hiring aggressively.
KEY QUOTE:
“This 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.”
xAI in a statement
