Elon Musk’s xAI Funding Round: Elon Musk’s AI startup, xAI, has announced that it has secured $20 billion in fresh funding. Big names such as Nvidia, Valor Equity Partners, and the Qatar Investment Authority are among the investors. The Series E funding round crossed the company’s original $15 billion target. The money will be used to expand computing infrastructure and set up some of the world’s largest GPU clusters.
However, the company did not reveal how much money each investor put in or whether the funds came as debt or equity. Elon Musk’s AI startup xAI also mentioned that the funding round saw participation from other firms, including StepStone Group, Fidelity Management & Research, MGX, Baron Capital Group, and Cisco Systems’ investment arm.
xAI Planned For Roughly $7.5 Billion Of Equity
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xAI had earlier planned to raise about $7.5 billion through equity and up to $12.5 billion in debt to buy Nvidia processors. The debt was to be placed in a special purpose vehicle, with the chips rented out for five years so investors could recover their money, according to reports.
The AI startup said the new funding will help it expand its infrastructure, speed up the development and rollout of AI products for billions of users, and support research linked to its goal of “understanding the universe.”
Reports also said xAI has already raised around $10 billion in equity and debt in 2025 but has been spending nearly $1 billion every month. Elon Musk earlier confirmed that the company is expanding its data centre capacity in Memphis to nearly 2 gigawatts.
https://t.co/RzNuclNfsR
— xAI (@xai) January 6, 2026
World’s Largest Data Centre For AI Training
One gigawatt of power is enough to supply electricity to around 7,50,000 homes in the US. Musk has earlier spoken about plans to build the world’s largest data centre for AI training. He had said that Colossus 2 would eventually use about 5,50,000 Nvidia chips, a project expected to cost tens of billions of dollars. (Also Read: Realme Pad 3 Launched In India With MediaTek Dimensity 7300 Chipset; Check Display, Camera, Battery, Price And Other Specs)
Meanwhile, the Ministry of Electronics and Information Technology (MeitY) took action against X Corp, accusing the platform of failing to stop the creation and spread of obscene, nude, and indecent content. The government on Friday directed X Corp to send an action taken report (ATR) “towards immediate compliance for prevention of hosting, generation, publication or transmission, sharing or uploading of obscene, nude, indecent and explicit content through the misuse of Al-based services like ‘Grok’ and xAl’s other services”.
X Corp said that it continues to take action against illegal content on its social media platform, including Child Sexual Abuse Material (CSAM), and is working with local governments and law enforcement agencies. (With IANS Input)
