Overview
- xAI said the oversubscribed round topped its $15 billion target, with investors including Nvidia, Cisco Investments, Valor Equity Partners, Stepstone Group, Fidelity, Qatar Investment Authority, MGX, and Baron Capital Group.
- The company said the funding will expand its Colossus I and II supercomputers and accelerate its product roadmap, with Grok 5 currently in training for consumer and enterprise use cases.
- xAI reported ending 2025 with more than one million H100 GPU equivalents and is adding data center capacity, including facilities in Memphis.
- People familiar with the deal told reporters the financing was structured as roughly $7.5 billion in equity and up to $12.5 billion in debt via a special-purpose vehicle to buy Nvidia chips that would be rented out over five years.
- Separate reporting describes a cash burn of about $1 billion per month and notes ongoing regulatory concern over Grok producing nonconsensual explicit imagery.