Elon Musk’s xAI raises $20B, as EU investigates child sexual abuse material

Elon Musk’s AI company xAI, which also owns X, has successfully completed its Series E funding round with significant oversubscription, raising $20 billion—five billion more than originally targeted. Investors include Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, the Qatar Investment Authority, MGX, and Baron Capital Group. Strategic partners NVIDIA and Cisco Investments are also participating, supporting xAI in expanding computing infrastructure and building the world’s largest GPU cluster.

The funding drives massive infrastructure expansion: xAI already operates Colossus I and II, the world’s largest AI supercomputers, and possesses more than one million H100-GPU equivalents. The company is deploying these resources to develop transformative AI products reaching billions of users and to advance foundational research.

Grok Models and 600 Million Users

In 2025, xAI has achieved several milestones: The Grok-4 series is built on Colossus’s training infrastructure and leverages reinforcement learning at unprecedented scale. Grok Voice functions as an intelligent voice agent with real-time conversations, low latency, and support for dozens of languages—available via the Grok app and in Tesla vehicles. According to the company, it reaches approximately 600 million monthly active users across the 𝕏 and Grok platforms.

Grok Imagine delivers fast image and video generation with state-of-the-art capabilities for multimodal understanding, editing, and creation. Integration with the 𝕏 platform enables Grok to process real-time information from the world and leverage xAI’s most powerful model to date.

However, Grok has also sparked controversy—most recently because the AI tool was used to create sexualized images of minors. The EU is now investigating Musk’s AI over alleged child sexual abuse material.

Grok 5 Already in Training

xAI is currently training Grok 5 and focusing on launching innovative consumer and enterprise products. These are designed to combine the capabilities of Grok, Colossus, and 𝕏 to transform how people live, work, and play. According to the company, it pursues the mission of understanding the universe.

The fourth version of xAI’s models clearly matches top models from Google, Anthropic, and OpenAI in benchmarks. Compared to Anthropic, xAI has now raised similar or even greater capital.