xAI raises $20 billion Series E at $230 billion valuation
The round came in above an earlier reported $15 billion target; Tesla's board later approved committing roughly $2 billion to it despite a shareholder vote on xAI funding narrowly failing in November.
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xAI announced it had raised $20 billion in a Series E funding round, well above an initial target of $15 billion that had been reported the previous month, in a round that valued the company at roughly $230 billion. xAI said the new capital would fund continued build-out of its compute infrastructure, including its Memphis, Tennessee data centres running the Colossus supercomputer, a newly acquired facility there, and a planned 500-megawatt data centre in Saudi Arabia using Nvidia chips, as it trained its next-generation Grok 5 model.
Investors named by xAI included Valor Equity Partners, StepStone Group, Fidelity Management & Research, Qatar Investment Authority, MGX and Baron Capital Group, alongside strategic investors Nvidia and Cisco Investments. xAI did not disclose the round’s valuation in its own announcement, though multiple reports put it at around $230 billion.
Weeks later, Tesla’s board approved committing roughly $2 billion to the round — a related-party investment given Musk’s control of both companies — despite a nonbinding shareholder vote in November that had narrowly failed to authorise Tesla funding for xAI, after Tesla’s bylaws counted abstentions as votes against. Coverage of the round noted that xAI’s reported 2025 revenue of roughly $500 million, with a 2026 target near $2 billion, sat far below the scale investors were valuing the company against, a gap common across frontier AI labs raising at this stage but unusually wide even by that standard.