Elon Musk’s artificial intelligence (A.I.) start-up xAI has been valued at $230 billion U.S. in a new funding round.
xAI said that it raised $20 billion U.S. in a funding round, exceeding its previous target of $15 billion U.S.
Investors in the latest funding round included major technology concerns such as Nvidia (NVDA) and Cisco Systems (CSCO).
Both Nvidia and Cisco work with xAI as strategic partners.
A.I. start-ups have seen their valuations rocket higher over the past year. Last October, OpenAI was valued at $500 billion U.S.
Musk’s A.I. company now owns and operates his social media platform X after merging with the company, formerly known as Twitter, in 2025.
While the latest funding round was a success, xAI faces a series of regulatory and legal issues in Europe and Asia after its Grok chatbot generated sexualized images of children.
The Grok chatbot has also produced non-consensual intimate images of adults, mostly women. Users have shared the images widely on the X social media platform.
Despite the controversies, xAI recently secured a deal with the U.S. Department of Defense, which has added Grok to its A.I. agent platform.
There is speculation that Musk plans to take xAI public this year, though nothing has been confirmed by the company.
