Elon Musk: With Nvidia’s support xAI has completed a $20 billion fundraising round
Elon Musk: the CEO of SpaceX and Tesla, has revealed that his artificial intelligence business, xAI, has successfully raised $20 billion from investors, including Nvidia, Valor Equity Partners, and the Qatar Investment Authority.
Stepstone arm, Fidelity Management & Research, MGX, Baron Capital Group, and the investment arm of Cisco Systems Inc. were among the investors that contributed to the fundraising, although the business did not reveal the specific investment amounts or the ratio of debt to equity.
To purchase Nvidia chips, xAI had budgeted up to $12.5 billion in debt and around $7.5 billion in equity held in a special purpose entity. According to sources, the chips would be leased out for five years, enabling lenders to recover their investment.
According to the AI firm, the funding would hasten the construction and rollout of its infrastructure, expedite the creation and distribution of AI products to billions of users, and support research that advances its goal of “understanding the universe.”
According to the claims, which cited sources, the company has been spending over $1 billion per month. In 2025, it had already raised roughly $10 billion in corporate stock and debt. Musk has already acknowledged that xAI is increasing Memphis’ data center capacity to about 2 gigawatts.
A gigawatt is sufficient to power around 7,50,000 households in the United States. Musk has previously said that Colossus 2 would ultimately contain 5,50,000 Nvidia processors, which will cost tens of billions of dollars, and he has openly discussed plans to construct the biggest data center in the world for AI training.
In the meanwhile, X Corp came under fire from the Ministry of Electronics and Information Technology (MeitY) for failing to stop the creation and sharing of pornographic, nude, and indecent material on its platform.
“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,” the government ordered X Corp to submit an action taken report (ATR) on Friday.
X Corp said that it is collaborating with law enforcement and municipal governments to combat illicit information on its social media platform, particularly Child Sexual Abuse Material (CSAM).