Elon Musk's xAI raises $20B to accelerate AI development
Elon Musk's AI startup, xAI, just pulled in a massive $20 billion in new funding—pushing the company's value to $230 billion.
The fresh cash is set to ramp up data centers, accelerate development of AI agents and software, and fuel more ambitious AI research.
What does xAI actually do?
xAI builds smart, autonomous AI models that could one day run humanoid robots like Tesla's Optimus.
Its Grok model powers chatbots, which you'll find inside X (formerly Twitter) and even in Tesla cars.
Big numbers & backers
With this round, xAI has raised at least $40 billion so far. Investors include heavyweights like Valor Equity Partners, Qatar Investment Authority, and NVIDIA.
The company operates huge Colossus data centers near Memphis with nearly 2 gigawatts of computing power.
Still, it reported a net loss of $1.46 billion for Q3 2025 on revenue of $107 million and gross profit of $63 million.