Elon Musk’s xAI Secures $20 Billion to Boost Data Centers and Research Initiatives

Elon Musk’s AI company, xAI, raised $20 billion—exceeding its $15 billion target—to expand data centers and fund advanced research, potentially pushing its valuation above $230 billion. Founded in 2023, xAI develops the chatbot Grok, with Grok 5 expected soon. Investors include Fidelity, Qatar Investment Authority, Valor Equity Partners, and Nvidia. Musk, formerly a co-founder of OpenAI, built xAI to compete with AI leaders like OpenAI and Google. xAI has raised over $42 billion to date. Musk has also filed lawsuits against OpenAI and Apple, alleging trade secret theft and anti-competitive practices related to Grok.