xAI raises $20B in Series E funding—but faces global scrutiny after Grok generates CSAM and nonconsensual deepfakes.
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xAI Says it Raised $20B in Series E Funding
xAI Raises $20B Amid Deepfake Abuse Scandal Elon Musk’s artificial intelligence startup, xAI, has secured a staggering $20 billion in Series E funding—just as it faces mounting international backlash over its Grok chatbot’s role in generating nonconsensual sexual deepfakes, including of children. The funding round, one of the largest ever for a private AI company, comes at a moment of both explosive growth and serious ethical reckoning. Investors include heavyweights like Valor Equity Partners, Fidelity, the Qatar Investment Authority, and strategic tech allies Nvidia and Cisco—though xAI hasn’t clarified whether the capital is debt or equity. Credit: Thomas Fuller/SOPA Images/LightRocket / Getty Images Massive Funding Fuels Ambitious AI Expansion With $20 billion in fresh capital, xAI plans to turbocharge its infrastructure and model development. The company says it will expand its data centers and accelerate training of its Grok large language models, which power the AI assistant integr…
