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xAI said it has completed a $20bn funding round backed by a group of strategic and institutional investors, including Nvidia, Valor Equity Partners and the Qatar Investment Authority. The deal underscores the scale of capital being deployed into AI infrastructure. The financing follows months of discussions and is expected to include a significant debt component. It is structured through a special-purpose vehicle (SPV) backed by Nvidia GPUs, which allows xAI to secure long-term computing capacity while limiting direct balance-sheet leverage. The raise comes as the company accelerates spending on data centres and model development, having already raised around $10bn last year and is reportedly burning about $1bn a month. It plans further expansion at its Memphis data centre campus.
xAI’s 12.5% 2030s were trading 0.6 points lower at 107.2, yielding 10%.
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