Elon Musk’s artificial intelligence company xAI has announced that it has raised a massive $20 billion (around Rs 1.7 lakh crore) in a new funding round, sharply increasing its financial firepower to compete with global AI leaders.
According to the company’s official announcement, xAI has completed an upsized Series E round, exceeding its earlier target of $15 billion and closing at $20 billion.
This makes it one of the largest single funding rounds in the global tech and AI space, and implies a very high valuation for the startup, reportedly in the range of about $230 billion. xAI is yet to confirm this valuation.
The round brings in a mix of major financial investors such as Valor Equity Partners, Fidelity, and Qatar Investment Authority, along with “strategic investors” like chip giant Nvidia and networking major Cisco.
These strategic backers are expected to support xAI not just with money, but also with advanced hardware and technology partnerships.
What xAI plans to do with the money
xAI says the fresh capital will be used mainly to expand its data centres, ramp up computing power and train more advanced versions of its Grok AI models.
The Elon Musk-led company is working on new capabilities such as voice, image and video generation, and plans to roll out products for both ordinary consumers and large enterprises. The firm also claims that its products on X (formerly Twitter) and Grok together reach around 600 million monthly active users, giving it a huge base to deploy new AI tools.
Congrats to the @xAI team and thank you to investors for your faith in our company https://t.co/F5VRCJbgpA
— Elon Musk (@elonmusk) January 6, 2026
