Elon Musk’s xAI Secures $20 Billion From Nvidia and Qatar to Scale Supercomputing

Elon Musk’s artificial intelligence firm, xAI, has successfully raised $20 billion in an upsized Series E funding round. The total capital infusion surpassed the original $15 billion goal, drawing support from prominent investors like Nvidia and the Qatar Investment Authority. This funding marks a pivotal step in the company’s efforts to build advanced AI products reaching a global user base.

Scaling the Colossus Supercomputer

A primary focus of the investment is the continued expansion of the Colossus supercomputer clusters located in Memphis. By the end of 2025, xAI reported having over one million H100 GPU equivalents at its disposal. These resources are currently being deployed to train Grok 5, the next iteration of the company’s flagship large language model. The deal structure includes a unique financing mechanism involving a special purpose vehicle (SPV) supported by Nvidia. This entity acquires high-end processors and leases them directly to xAI, allowing the company to scale its hardware without heavy balance sheet debt. Reports indicate that Nvidia contributed roughly $2 billion in equity to this arrangement.

Integration and Product Roadmap

Beyond hardware, xAI is prioritizing the integration of its Grok models into the 𝕏 platform and Tesla vehicles. Features such as Grok Voice and real-time news processing give the company a distinct advantage in providing up-to-the-minute information. The firm is also aggressively recruiting talent to advance its core mission of understanding the universe.

This financial surge arrives amidst an intense legal battle between xAI and its primary competitors. Musk’s company recently filed a federal lawsuit against Apple and OpenAI, alleging collusion to block competition in the AI sector. The suit specifically challenges the integration of ChatGPT into iOS as a monopolistic barrier to entry for rival AI services. [https://www.nasdaq.com/articles/elon-musks-xai-raises-20-bln-funding-backing-nvidia-and-qatar]

Other key participants in the funding round include Valor Equity Partners, Stepstone Group, and Fidelity Management. Strategic backing from Cisco Investments further underscores the industry-wide effort to build out the world’s largest GPU clusters. This collective investment positions xAI as a formidable industrial power in the race for artificial general intelligence.