Elon Musk’s xAI in Talks to Raise $20B, Eyeing $120B Valuation
Elon Musk’s xAI Holdings is reportedly in early talks to raise a massive $20 billion in new funding, according to Bloomberg. If successful, the round would value Musk’s AI-social media empire at over $120 billion — making it the second-largest startup funding round in history, behind only OpenAI’s recent $40 billion haul.
Sources say the funding could help ease X’s (formerly Twitter’s) crushing debt load, which costs the company around $200 million a month in interest payments, adding up to over $1.3 billion annually by the end of 2024.
The potential deal highlights not just AI’s enduring investor magnetism, but also Musk’s rising influence in U.S. politics. He has recently emerged as a major player inside President Trump’s White House, further bolstering his reach beyond tech.
Musk is expected to tap his familiar pool of heavyweight backers — including Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund. Gracias has reportedly even taken a role in Musk’s newly-formed Department of Government Efficiency.
