Elon Musk's AI venture, xAI, has exceeded expectations by securing $20 billion in a Series E funding round.
xAI Raises $20 Billion From Top Investors Including Nvidia
In November, it was reported that Musk's AI startup is targeting $15 billion but ended up raising $20 billion, according to an announcement shared on Tuesday.
The funding round attracted major investors, including Nvidia Corp (NASDAQ:NVDA), Cisco Investments (NASDAQ:CSCO), Fidelity, Valor Equity Partners, Stepstone Group (NASDAQ:STEP), Qatar Investment Authority, Abu Dhabi's MGX and Baron Capital Group.
Nvidia is described as a "strategic investor," backing efforts to help build what is expected to be one of the world's largest GPU clusters.
"Congrats to the @xAI team and thank you to investors for your faith in our company," Musk wrote on X, celebrating the milestone.
xAI Joins Elite AI Startups With Record Valuation
The funding comes as AI startups continue to reach record valuations. Earlier in 2025, ChatGPT-maker OpenAI raised $6.6 billion at a $500 billion valuation, while Anthropic attracted investment from Microsoft Corp (NASDAQ:MSFT) and Nvidia at a $350 billion valuation.
Musk's xAI now also owns and operates X, formerly known as Twitter, following a March 2025 merger.
Despite its financial success, xAI is under scrutiny. The company's Grok chatbot sparked international regulatory probes after generating sexualized images of minors and non-consensual intimate images of adults.
Authorities in Europe, India and Malaysia have opened investigations.
Benzinga's Edge Stock Rankings rank Nvidia in the 94th percentile for Growth and the 98th percentile for Quality, underscoring its strong position relative to AI heavyweights like TSMC and AMD.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: JRdes / Shutterstock.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
