Elon Musk’s xAI Holdings is in talks to raise $20 billion in fresh funding, potentially valuing the AI and social media combo at over $120 billion, according to a new Bloomberg report that says talks are in the “early stages.” TechCrunch reported.
If successful, the deal would be the second-largest startup funding round ever, behind only OpenAI’s $40 billion raise last month.
The funding could help alleviate X’s substantial debt burden, which is costing the company a whopping $200 million monthly in servicing fees, per Bloomberg’s sources, with annual interest expenses exceeding $1.3 billion by the end of last year.
A raise of this size would also showcase AI’s continued investor appeal, as well as reflect Musk’s surprising emergence as a political power player inside President Trump’s White House.
CNBC reported: Elon Musk’s xAI Holdings is in discussions with investors to raise about $20 billion, Bloomberg News reported Friday, citing people familiar with the matter.
The funding would value the company at over $120 billion. according to the report.
Musk was looking to assign “proper value” to xAI, sources told CNBC’s David Faber earlier this month. The remarks were made during a call with xAI investors, sources familiar with the matter told Faber. The Tesla CEO at that time didn’t explicitly mention any upcoming funding round, but the sources suggested xAI was preparing for a substantial capital raise in the near future.
The funding amount could be more than $20 billion as the exact figure had not been decided, the Bloomberg report added.
Artificial intelligence startup xAI didn’t immediately respond to a CNBC request for comment outside of U.S. business hours.
Reuters reported: Elon Musk’s xAI Holdings is in talks with investors to raise roughly $20 billion in funding for his newly combined artificial intelligence startup and social media business, Bloomberg News reported on Friday, citing people familiar with the matter.
The transaction would value the company at more than $120 billion, the report said, citing one of the people.
The amount in the round could be more than $20 billion, the report said, adding that the total had not yet been decided, and terms could change.
xAI didn’t immediately respond to requests for comment.
xAI acquired X in a deal last month that valued the social media platform at $33 billion and allowed the value of Musk’s AI firm to be shared with his co-investors in the company formerly known as Twitter.