Elon Muskโs 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 โearly stages.โ If successful, the deal would constitute the the second-largest startup funding round ever, behind only OpenAIโs $40 billion raise last month.
The funding could help alleviate Xโs substantial debt burden, which is costing the company a whopping $200 million monthly in servicing fees, per Bloombergโs sources, with annual interest expenses exceeding $1.3 billion by the end of last year.
A raise of this size would showcase AIโs continued investor appeal, as well as reflect Muskโs surprising emergence as a political power player inside President Trumpโs White House.
Musk will likely draw from some of the same backers whoโve consistently funded his ventures, from Tesla to SpaceX, including Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund. Gracias has even taken on a role as lieutenant in Muskโs Department of Government Efficiency.
xAI didnโt respond immediately to comment.
