Elon Musk’s AI startup xAI announced the completion of its Series E funding round, raising $20 billion. This significantly exceeds the initial target of $15 billion.
- Investors include Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, as well as sovereign wealth funds Qatar Investment Authority and MGX. NVIDIA and Cisco Investments became strategic partners in the round.
- The funds raised will be used to expand the Colossus I and II computing base. By the end of 2025, the company will already be operating with a capacity equivalent to more than one million NVIDIA H100 graphics processors. This makes Colossus one of the largest supercomputers in the world.
What’s wrong with Grok
Despite its financial success and technical scaling, Grok’s development has been accompanied by a series of incidents. In 2024 and 2025, Grok repeatedly created fake news headlines, misinterpreting users’ jokes or sarcastic posts as real events.
The company also faced criticism regarding privacy: xAI automatically used X users’ data to train its models, and once even published their query data online. Among the most interesting were instructions for manufacturing drugs, weapons, and even a plan to assassinate Elon Musk.
In addition, the Grok Imagine image generation feature was embroiled in scandals due to the lack of strict filters on the creation of deepfakes of public figures and politicians.
Read more: Chip and electricity shortages. The artificial intelligence boom could accelerate inflation in 2026
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https://en.ain.ua/2026/01/07/xai-raises-20b-for-colossus-supercomputer/