Elon Musk attends the U.S.-Saudi Investment Forum in Washington, D.C., U.S., November 19, 2025.
Evelyn Hockstein | Reuters
Elon Musk’s xAI said it raised $20 billion in a funding round, exceeding its prior target of $15 billion.
CNBC reported in November that a financing would value the artificial intelligence startup at about $230 billion.
Investors included Nvidia and Cisco Investments as well as long-time Musk company backers Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX and Baron Capital Group.
Both Nvidia and Cisco work with xAI as vendors and strategic partners.
AI startups reached sky-high valuations in 2025, raising massive amounts of capital to power seemingly endless demand for their foundational models. In October, OpenAI closed a $6.6 billion share sale at a $500 billion valuation, and a month later Anthropic was valued at around $350 billion, with capital coming from Microsoft and Nvidia.
Musk’s AI venture now owns and operates his social network X after merging with the company, formerly known as Twitter, in March.
WATCH: xAI raises $20 billion
