Elon Musk's xAI Raises $20 Billion, Faces Criticism for Grok

xAI Announces $20 Billion Fundraising

xAI, the artificial intelligence company founded by Elon Musk, has raised $20 billion in a new funding round. The announcement was made on February 6, 2025, exceeding the initial target of $15 billion. This funding comes at a time of intense international pressure regarding the Grok platform, developed by xAI.

Criticism of Grok and Ethical Issues

Grok has faced criticism for allowing the creation of unauthorized sexualized images, especially of women and minors, through a setting called "Spicy Mode". These concerns raise ethical questions about the use of artificial intelligence in content generation.

The Competitive Landscape of Artificial Intelligence

xAI competes in an increasingly saturated generative AI market, facing competitors like OpenAI and Google. Despite the controversies surrounding Grok, investor interest in the technology remains high, as evidenced by the participation of Valor Equity Partners, Fidelity Management, among others.

Investments and Growing Infrastructure

The investment round was bolstered by Nvidia, which will support the expansion of xAI’s computing infrastructure by providing its renowned AI chips and software. The company operates two data centers, Colossus I and II, housing over a million high-performance GPUs.

Innovations and Reach

Recently, xAI launched its Grok 4 language models and Grok Voice, a real-time voice agent already available in Tesla vehicles. According to the company, its services have reached approximately 600 million monthly active users through the X platform and Grok apps.

Future Prospects

In addition to initiating training for Grok 5, xAI plans to activate AI supercomputers that, according to reports, will be the largest in the world. The company faces a challenging landscape, but the demand for AI innovation continues to drive significant investments, even amid ethical concerns.