Elon Musk's xAI Holdings in Talks for $20 Billion Funding Round, Valuing Company at Over $120 Billion
9 Sources
[1]
Musk's xAI Holdings is reportedly raising the second-largest private funding round ever | TechCrunch
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." If successful, the deal would constitute the the second-largest startup
[2]
Elon Musk's XAI Holdings Is in Discussions to Raise $20 Billion
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, according to people familiar with the matter. If completed, the prospective deal would be the second-largest startup funding
[3]
Musk says he's looking to put 'proper value' on xAI during investor call, sources say
Tesla CEO Elon Musk attends a cabinet meeting at the White House in Washington, D.C., U.S., April 10, 2025. Elon Musk is looking to put "proper value" on his artificial intelligence startup xAI, sources told CNBC's David Faber. The comments came during a call with xAI investors last week, sources
[4]
Musk: xAI needs a "proper value"
Elon Musk is looking to put "proper value" on his artificial intelligence startup xAI, sources told CNBC's David Faber during an investor call last week. The Tesla CEO did not explicitly address an upcoming funding round, but sources interpreted his comments as a sign that xAI is preparing for a
[5]
Elon Musk's XAI Holdings is in discussions to raise $20 billion
Announced in March, XAI Holdings was created from the combination of X, formerly Twitter, and Musk's AI venture, xAI. The new funding could be used to pay down some of the debt that Musk took on when he converted Twitter into a private company, later renaming it X, sources said. Elon Musk's XAI
[6]
Elon Musk's xAI Reportedly Looking To Raise As Much As $25 Billion As It Continues Work On The Colossus 2 Supercomputer That Is Expected To House 1 Million NVIDIA GPUs At A Cost Of Over $35 Billion
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. After doubling the size of its existing Colossus supercomputer to 200,000 NVIDIA GPUs, Elon Musk's xAI has already started work on its next most ambitious
[7]
Report: New Valuation Push for Elon Musk's xAI | PYMNTS.com
After spending much of his time and energy this year as head of the Department of Government Efficiency (DOGE), could Elon Musk be pivoting to refocus on his businesses? The sources also said a $1 billion potential run rate figure was mentioned on the call. CNBC said the investor call took place
[8]
Elon Musk's XAI Holdings ss in discussions to raise $20B
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, according to people familiar with the matter. If completed, the prospective deal would be the second-largest startup funding
[9]
Elon Musk's xAI Holdings in talks to raise $20 billion from investors, Bloomberg News reports
(Reuters) -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
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Elon Musk's xAI Holdings, a combination of X (formerly Twitter) and his AI venture xAI, is reportedly in discussions to raise $20 billion in funding. This could potentially value the company at over $120 billion and become the second-largest private funding round ever.
xAI Holdings Seeks Massive Funding Round
Elon Musk's xAI Holdings, a recently merged entity combining X (formerly Twitter) and his AI startup xAI, is reportedly in talks to raise approximately $20 billion in a new funding round
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. If successful, this would value the company at over $120 billion and become the second-largest private funding round in history, trailing only OpenAI's $40 billion raise earlier this year2
.Strategic Motivations and Financial Implications
The substantial funding round could serve multiple purposes for xAI Holdings. Primarily, it may help alleviate X's significant debt burden, which currently costs the company approximately $200 million monthly in servicing fees. By the end of 2024, X's annual interest expenses exceeded $1.3 billion
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.During a recent investor call, Musk expressed his intention to establish a "proper value" for xAI, which sources interpreted as a sign of an impending capital raise
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. The company also discussed potential revenue at a run rate of $1 billion or more during this call4
.Previous Funding and Company Background
This potential funding round follows a reported raise of up to $6 billion at a $50 billion valuation just months ago, aimed at purchasing 100,000 Nvidia chips. That funding reportedly included $5 billion from Middle East sovereign funds and $1 billion from other investors
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.xAI was initially announced in July 2023 with the ambitious goal of "understanding the true nature of the universe." The company launched a chatbot called Grok last year, positioning itself to compete with other AI chatbots like Anthropic's Claude and OpenAI's ChatGPT
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.Related Stories
Merger and Valuation
In March, Musk announced the merger of xAI with social media platform X in an all-stock deal, valuing the combined entity at $80 billion. At the time, Musk stated that X had been valued at $33 billion and noted that "xAI and X's futures are intertwined"
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.Investor Interest and Political Connections
The size of this potential funding round underscores both the continued investor enthusiasm for AI companies and Musk's standing as a business titan and political influencer. Musk is expected to draw from some of his consistent backers, including Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund
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.Musk's recent involvement in President Trump's administration, including his role in the Department of Government Efficiency, has raised questions about the stability of his companies. Tesla shares have fallen over 40% this year, potentially influencing Musk's renewed focus on his other business entities
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