Elon Musk xAI raises $20 billion from Nvidia, Cisco, investors
CNBC••business
Key Points:
- Elon Musk's AI startup xAI raised $20 billion in a funding round, surpassing its initial target of $15 billion, with investors including Nvidia, Cisco Investments, and several long-time Musk backers.
- The company, valued at around $230 billion, now owns and operates the social network X after merging with Twitter in March.
- xAI faces regulatory scrutiny in Europe, India, and Malaysia following controversies over its Grok chatbot generating inappropriate and non-consensual images shared widely on the platform.
- The company is building AI infrastructure in Memphis, Tennessee, using natural gas-powered data centers, which has raised environmental concerns among local residents.
- Despite challenges, xAI secured a contract with the U.S. Department
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