-1.32% Artificial intelligence company xAI, founded by Elon Musk, announced on Tuesday that it has raised $20bn in a major funding round, far exceeding its initial target of $15bn. The fundraising now values the start-up at about $230bn, according to information reported by CNBC. The deal reflects investors' growing appetite for companies specialising in foundational AI models. Several heavyweights from the technology and finance sectors participated in the deal, including Nvidia and Cisco, both xAI's investors and technology partners. The round also includes long-time backers of Elon Musk's projects, such as Fidelity, Valor Equity Partners, the Qatar Investment Authority, Abu Dhabi's MGX fund, Stepstone Group and Baron Capital Group. This broad support comes as valuations in the artificial intelligence sector continue to inflate sharply. Since its merger with the X platform (formerly Twitter) in March 2025, xAI has expanded its influence across the digital ecosystem controlled by Elon Musk. The fundraising places the company among the sector's most highly valued players, behind OpenAI, estimated at $500bn after a secondary transaction in October, and Anthropic, valued at $350bn a month later. The momentum underscores the exceptional appeal of AI technologies to global investors. © MarketScreener.com - 2026