Elon Musk's AI company xAI has officially announced the completion of its Series E funding, raising a total of $2 billion. Although xAI has not yet disclosed the specific form of the funds (equity or debt), the list of investors is extremely impressive.

Investor Landscape: Tech Giants and Sovereign Wealth Funds Join Forces

According to xAI's official blog, this round of funding was led by Valor Equity Partners, Fidelity, and the Qatar Investment Authority. Notably, semiconductor giant NVIDIA and network equipment leader Cisco also joined as "strategic investors."

Currently, the monthly active user count of xAI's social platform X and the Grok chatbot has reached 600 million. xAI stated that the large amount of new funding will be mainly used to expand its data center capabilities and accelerate the iteration of the Grok model.

xAI, Musk, artificial intelligence, AI

Safety Crisis: Grok Becomes a Tool for Producing Illegal Content

However, behind the capital frenzy, xAI is facing serious technical ethics and legal challenges. Last weekend, Grok was exposed to have serious security vulnerabilities: the model failed to intercept requests for generating explicit deepfake videos of real people (including children), but instead executed the instructions.

The generated illegal content has actually touched on the boundaries of child sexual abuse material (CSAM) and non-consensual real-person content, triggering strong condemnation from society.

Regulatory Crackdown: Governments Around the World Launch Joint Investigations

Due to this security scandal, xAI's compliance has caught the attention of global regulatory agencies. Currently, international institutions from the European Union, the UK, India, Malaysia, and France