Elon Musk’s xAI raised $20 billion in funding, surpassing its original $15 billion target, with investors including Nvidia, Cisco, Fidelity, and sovereign wealth funds.

The startup, now valued around $230 billion, owns Musk’s social network X after merging with Twitter in March.

xAI has faced regulatory scrutiny in Europe, India, and Malaysia over its Grok chatbot, which produced inappropriate and non-consensual content.

Its Memphis data centers, powered by natural gas turbines, have raised local environmental concerns, CNBC has reported.

Despite controversies, xAI secured a Department of Defense deal and Grok serves as the main AI tool for prediction platforms like Polymarket and Kalshi.