xAI says it has raised $20 billion in Series E funding

xAI, Elon Musk’s AI company behind the Grok chatbot – and it is Owns X – Announced that it had raised $20 billion in a Series E financing round.

The company wrote in Blog post Investors will include Valor Equity Partners, Fidelity, Qatar Investment Authority, and others, including Nvidia and Cisco as “strategic investors.” xAI did not disclose whether these investments come in the form of stocks or debt.

xAI says it has about 600 million monthly active users of X and Grok, and will use this new funding to continue expanding its data centers and Grok models.

However, as sophisticated AI grows, so does its ability to cause harm. Last weekend, X users asked Grok to create fake, sexualized images of real people, including children. Rather than deny these requests or activate any type of protection, Grok complied, effectively producing CSAM and other non-consensual sexual content of real people.

XAI now Under investigation By international authorities in the European Union, the United Kingdom, India, Malaysia and France.