Elon Musk’s artificial intelligence company, xAI, has secured a massive Series E funding round worth Sh2.581 trillion, lifting its valuation beyond Sh25.8 trillion and cementing its position as one of the world’s top AI startups.
The round, backed by major investors including Nvidia and Qatar’s sovereign wealth fund, comes as xAI ramps up computing power and begins training Grok 5, intensifying the global race against rivals OpenAI and Anthropic.
The company said the Series E round attracted high-profile support from Nvidia and Qatar’s sovereign wealth fund, reflecting confidence in xAI’s rapid growth and long-term ambitions.
With a reported valuation of about Sh29.7 trillion, xAI is now the third most valuable frontier AI lab worldwide, trailing only Anthropic at Sh45.2 trillion and OpenAI at Sh64.5 trillion.
The announcement underscores the accelerating competition in the artificial intelligence sector, where funding rounds are growing larger and valuations higher.
According to the company, the surge in investments shows that the “AI funding wars” are far from cooling, and xAI now joins OpenAI and Anthropic in the exclusive Sh25.8 trillion+ valuation club.
xAI is rapidly scaling its computing infrastructure, a critical factor for developing advanced AI models.The company is expanding its data centre presence in Memphis, with a third facility planned. Once completed, the combined power capacity is expected to approach two gigawatts, making xAI one of the world’s largest consumers of AI-focused computing power.
The firm also revealed that Grok 5 is currently in training, signaling the next stage in the evolution of its flagship chatbot. xAI plans to launch new products that integrate the chatbot with the social media platform X and its Colossus supercomputer, creating a tightly linked AI ecosystem where distribution, data, and computing are closely aligned.
The valuation confirms how quickly xAI has risen to the top tier of AI companies despite being a relatively new entrant. While it remains behind OpenAI and Anthropic in headline valuations, it has surged ahead of most competitors in the sector.
A central feature of xAI’s strategy is what the company describes as Musk’s “unique advantage of owning both the AI and the distribution platform (X).”
This dual control allows xAI to deploy, test, and scale products quickly. The company also cited expanded integrations with Tesla and Optimus robotics as part of a broader ecosystem that could accelerate adoption and performance.
By linking social media, electric vehicles, robotics, and high-performance computing, xAI aims to position Grok for major advancements in AI. This approach contrasts with rivals that rely on third-party platforms or partnerships for product distribution.
The scale of the Series E round reflects a broader trend in the AI sector, where high capital requirements stem from the costs of data centres, specialised chips, and energy consumption. With infrastructure nearing two gigawatts, xAI is now among the most resource-intensive technology projects in the world.
As investment continues to pour into artificial intelligence, xAI’s latest funding round marks another milestone in an industry defined by speed, scale, and competition. With Grok 5 in training and integrated products on the horizon, xAI signals its intent not just to compete at the top, but to reshape the way advanced AI systems are built, deployed, and distributed globally.
