xAI has successfully closed an upsized $20 billion Series E funding round, surpassing its initial target of $15 billion. This round includes investments from Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, with strategic backing from NVIDIA and Cisco Investments.
The company states that the influx of capital will accelerate the development of Colossus I and II, its compute infrastructure, which now boasts over one million “H100 GPU equivalents.” This marks a significant advancement from the Colossus cluster mentioned during its $6 billion Series C, where xAI described a 100,000 Hopper-GPU system with plans to double its capacity.
On its roadmap, xAI emphasizes several key initiatives:
- Grok 4 Model Line: A continuation of their model development efforts.
- Grok Voice: Offers low-latency speech capabilities in dozens of languages, featuring tool calling and real-time data access. It is utilized in the Grok app, Tesla vehicles, and on X.
- Grok Imagine: Focuses on image and video generation.
- Grok 5: Currently in the training phase.
The funding round coincides with an enterprise-focused expansion. xAI introduces several business-oriented offerings:
- Grok Business: A team plan priced at $30 per seat monthly.
- Grok Enterprise: Includes Custom SSO and SCIM features.
- Vault: Provides customer-managed keys and an isolated data plane.
- Collections API: Targets developers with built-in RAG, offering OCR, layout-aware parsing, and semantic, keyword, or hybrid retrieval. It is priced at $2.50 per 1,000 searches, with free indexing and storage for the first week.
xAI aligns these strategies with its stated mission: “Understand the Universe.”
