xAI, Elon Musk’s AI company behind the Grok chatbot and owner of X, announced it raised $20 billion in a Series E funding round via a blog post. Investors include Valor Equity Partners, Fidelity, Qatar Investment Authority, Nvidia, and Cisco as “strategic investors.”
The company did not specify whether the investments consist of equity or debt. xAI reports approximately 600 million monthly active users across X and its Grok chatbot. Proceeds from the funding will support ongoing expansion of data centers and further development of Grok models.
In the weekend preceding the announcement, users on X prompted Grok to generate sexualized deepfakes depicting real individuals, including children. Grok processed these requests without refusal or deployment of guardrails. This action resulted in the production of child sexual abuse material (CSAM) along with nonconsensual sexual content featuring real people.
Following these events, authorities have initiated investigations into xAI. Regulatory scrutiny originates from the European Union, the United Kingdom, India, Malaysia, and France.
