Overview
xAI is an artificial intelligence company founded by Elon Musk in March 2023 with the mission to understand the true nature of the universe through advanced AI systems. The company develops maximally truth-seeking AI that aims to benefit all of humanity. xAI’s flagship product is Grok, an AI chatbot with a rebellious streak that has access to real-time information from the X platform. In March 2025, xAI acquired X (formerly Twitter) in an all-stock transaction that valued X at $33 billion and xAI at $80 billion, combining the two companies into X.AI Holdings Corp. The company operates the world’s largest AI supercomputer, Colossus, in Memphis, Tennessee, which was built in just 122 days and now runs on over 200,000 Nvidia GPUs. As of December 2025, xAI is raising $15 billion at a valuation of $230 billion, making it one of the most valuable AI startups in the world. Grok has reached 64 million monthly active users as of September 2025.
Products & Technology
- Grok 4.1: Latest flagship model with improved reasoning and reduced hallucinations (Nov 2025).
- Grok 4.1 Fast: Best tool-calling model with 2M token context window and Agent Tools API.
- Grok 4.20: Winner of Alpha Arena trading competition with 47% returns (releasing late Dec 2025).
- Grok 4 Heavy: Premium tier with multi-agent collaboration ($300/month).
- Grok 3: Advanced model with Think Mode for extended reasoning (93.3% on AIME 2025).
- Grok Platform: AI chatbot with real-time X integration and voice capabilities.
- Colossus Supercomputer: World’s largest AI training cluster with 200K+ GPUs.
- xAI API: Developer platform for integrating Grok models into applications.
- Aurora: Advanced text-to-image model with photorealistic capabilities.
- Grok Imagine: 6-second animated video generation from text prompts (July 2025).
2024-2025 Highlights
- Raising $15B at $230B valuation (Dec 2025, closes Dec 19).
- Grok 4.20 won Alpha Arena trading competition with +47% returns (Dec 2025).
- Reached 64M monthly active users for Grok (Sep 2025).
- Launched Grok 4.1 with improved reasoning and personality (Nov 2025).
- Grok 4.1 Fast processed 1.16 trillion tokens on OpenRouter (record).
- Achieved $200B valuation in $10B funding round (Sep 2025).
- Released Grok Code Fast 1 for agentic coding (Aug 2025).
- Launched Grok 4 and Grok 4 Heavy with multi-agent collaboration (July 2025).
- Raised $10B in debt and equity at $150B valuation (Jul 2025).
- Acquired X (Twitter) for $33B in all-stock transaction (Mar 2025).
- Expanded Colossus to 200K GPUs, planning scale to 1M GPUs.
- Building Colossus 2 in Memphis (550K GPUs, >1GW power capacity).
- Received $200M Pentagon contract for AI in military applications.
- Released Aurora text-to-image model and Grok Imagine video generation.
- Launched xAI For Government suite for U.S. federal agencies.
Funding Rounds
| Announced | Money Raised | Round | Valuation | Investors |
|---|---|---|---|---|
| Dec 19 2025 | $15B | Growth Equity | $230B (pre-money) | Multiple institutional investors (Details) |
| Sep 19 2025 | $10B | Growth Equity | $200B | Valor Capital, Qatar Investment Authority, Kingdom Holding |
| Jul 01 2025 | $10B | Debt + Equity | $150B | Morgan Stanley ($5B debt), SpaceX ($2B equity) |
| Mar 28 2025 | – | X Acquisition | $113B (combined) | All-stock transaction (X valued at $33B, xAI at $80B) |
| Feb 14 2025 | $10B (planned) | Growth Round | $75B | Sequoia Capital, Andreessen Horowitz, Valor Equity |
| Dec 23 2024 | $6B | Series C | $50B | Fidelity, BlackRock, Sequoia Capital |
| May 26 2024 | $6B | Series B | $24B | Valor Equity, Vy Capital, Andreessen Horowitz, Sequoia Capital, Prince Alwaleed Bin Talal |
| Dec 2023 | $134.7M | Series A | $1B (target) | Multiple investors |