xAI raises $20B Series E with backing from NVIDIA, Fidelity

Elon Musk-founded xAI has raised $20 billion in a Series E round, above its original target. The funding brings in major financial and strategic investors as xAI scales compute and products.

Funding details: USD 20 billion (Series E)

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xAI has closed a $20 billion Series E round, pushing past its original $15 billion target. The company announced the funding on January 6, 2026.

The round includes participation from Valor Equity Partners, StepStone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group. Strategic backers NVIDIA and Cisco Investments also joined the round.

xAI said the capital will be used mainly to scale its computing capacity and speed up product development. The company has been building massive data centers, including Colossus I and II, and claims to have crossed more than one million H100 GPU equivalents by the end of 2025.

Over the past year, xAI has rolled out several Grok updates. These include new language models, voice-based AI features, and image and video generation tools. Grok is also deeply tied to the 𝕏 platform, where it pulls in real-time data to answer live events.

xAI says its products now reach about 600 million monthly active users across the 𝕏 and Grok apps. Some Grok features are also available in Tesla vehicles.

The company is currently training Grok 5 and plans to launch more consumer and enterprise products in the coming months. It also said it is hiring aggressively as it expands teams across research, infrastructure, and product.

The funding announcement was shared directly by xAI.