Musk’s xAI Raises $20 Billion With Backing From Nvidia and Cisco – Decrypt

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Musk’s xAI Raises Billion With Backing From Nvidia and Cisco – Decrypt

By Vismaya V
Publication Date: 2026-01-07 04:48:00

In brief

  • Elon Musk’s xAI closed an upsized $20 billion Series E round with backing from Nvidia, Cisco Investments, and others.
  • The funding will accelerate the buildout of what xAI claims are the world’s largest GPU clusters, totaling over one million H100 equivalents.
  • The capital injection comes as xAI faces international probes over Grok’s ability to generate non-consensual deepfakes and sexualized images of minors.

Elon Musk’s artificial intelligence startup xAI has closed an upsized $20 billion Series E funding round, exceeding its original $15 billion target as tech giants pour billions into the AI arms race despite mounting regulatory scrutiny and AI bubble warnings.

The company announced on Tuesday that it had completed the Series E round, with participation from heavyweight investors, including blue-chip investors such as Nvidia and Cisco Investments, as xAI scales what it claims are “the largest GPU clusters in the world.”

Valor Equity Partners, Stepstone Group, Fidelity…

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