Overview
- The oversubscribed round topped a $15 billion target and drew investors including Nvidia, Cisco Investments, Fidelity, Valor Equity Partners, Stepstone Group, Qatar Investment Authority, MGX and Baron Capital Group, with people familiar saying the deal could lift valuation toward roughly $230 billion.
- xAI says the funds will scale its Colossus I and II supercomputers and related data centers, after ending 2025 with more than one million H100 GPU equivalents.
- Grok 5 is in training and the company plans new consumer and enterprise products that use Grok models and distribution through X.
- Reports describe a financing structure using a special purpose vehicle with an equity–debt split to buy Nvidia processors, with Bloomberg reporting Nvidia may commit up to about $2 billion.
- The financing lands as Grok faces international scrutiny for generating non‑consensual and sexualized imagery, with condemnation from the European Commission and probes in France, the UK, India and Malaysia.