Elon Musk’s ChatGPT rival xAI raises $20 billion in funding; investors include Nvidia which has promised up to $100 billion to Sam Altman’s OpenAI

Elon Musk’s artificial intelligence (AI) startup, xAI, has raised $20 billion in its latest funding round. One company reportedly investing in xAI is Nvidia. The chipmaking giant’s participation in funding the Musk-owned startup is notable, as the company also maintains a partnership with one of xAI’s biggest rivals, OpenAI. In September 2025, Nvidia committed up to $100 billion to build AI infrastructure for Sam Altmann-led OpenAI, a project that aims to deploy 10 gigawatts of computing power by late 2026.

According to a CNBC report, apart from Nvidia, other investors in xAI’s latest funding round also include Cisco Investments, alongside existing backers such as Fidelity, the Qatar Investment Authority, and Abu Dhabi’s MGX.