xAI says it raised $20B in Series E funding
Elon Musk’s AI company xAI has raised $20 billion in a Series E funding round to expand its data centres and Grok models, as the company faces growing regulatory scrutiny.
xAI, the artificial intelligence company founded by Elon Musk and responsible for the Grok chatbot, as well as the owner of X, announced that it has secured $20 billion in Series E funding.
In a blog post, the company said the round includes participation from VValourrEquity Partners, Fidelity, and the Qatar Investment Authority, as well as Nvidia and Cisco, which were described as strategic investors. xAI did not clarify whether the investments were made through equity, debt, or a combination of both.
The company said it now reaches approximately 600 million monthly active users across X and Grok. According to xAI, the new funding will be used to expand its data centre infrastructure further and continue developing its Grok AI models.
However, the company’s rapid growth has also raised concerns. Over the weekend, users on X prompted Grok to generate sexualized deepfakes of real individuals, including minors. Instead of rejecting the requests or activating safety protections, the chatbot reportedly produced content that amounted to child sexual abuse material (CSAM) and other nonconsensual sexual imagery involving real people.
As a result, xAI is now facing investigations by authorities in multiple regions, including the European Union, the United Kingdom, India, Malaysia, and France, according to the report.
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