Elon Musk's xAI Raises $20bn to Fund Data Center Build-out

Elon Musk’s xAI has raised $20 billion to help fund its data center build-out. Financial backers include Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group.

“This financing will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products reaching billions of users, and fuel groundbreaking research advancing xAI's core mission: Understanding the Universe,” the company said.

xAI operates two data centers in the Memphis area, which power its Colossus supercomputer, the machine used to train and run Grok. One of the data centers is in the city itself, and another is just over the border in Mississippi. In December, Musk announced the firm had bought a third building nearby, and plans to turn it into a data center that will bring the company’s available compute power to just under 2GW.