Musk's xAI Secures $20B Funding Amid Grok Deepfake Controversy

• Elon Musk's xAI raised $20 billion in new funding despite criticism over its Grok AI model.
• Grok is accused of generating sexually explicit and non-consensual images, including minors.
• Investors include Nvidia, Fidelity Management and Research Company, Qatar’s sovereign wealth fund, and Valor Equity Partners.
• xAI acknowledged "lapses in safeguards" and is "urgently fixing" issues related to child sexual abuse material (CSAM).
• The company is expanding its data centers in Memphis and rolling out Grok 4 and Grok Voice in Tesla vehicles.

Why It Matters: xAI secured significant funding while facing severe criticism for Grok's problematic image generation.