xAI Raises $20 Billion in Series E Funding Amid Global Scrutiny
Elon Musk–founded artificial intelligence company xAI has announced that it has raised $20 billion in its Series E funding round. In a blog post, the company said the round saw participation from Valor Equity Partners, Fidelity, the Qatar Investment Authority, as well as strategic investors Nvidia and Cisco. However, xAI did not clarify whether the investment was made in equity or debt. TechCrunch reported the development.
According to xAI, the newly raised funds will be used to expand data centre infrastructure and further develop its Grok AI model. The company also claimed that, combined, X and Grok now have around 600 million monthly active users.
At the same time, xAI is facing serious controversy. The company has been accused of allowing Grok to generate sexually explicit deepfake content of real individuals, including minors, allegedly in response to user prompts on X.
Following these allegations, investigations have been launched against xAI in several regions, including the European Union, the United Kingdom, India, Malaysia, and France.
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