Reports suggest that Elon Musk's xAI Holdings is in talks with investors to secure $20 billion in funding. If successful, this would value the company at over $120 billion, making it the second-largest funding round in history, second only to OpenAI's $40 billion round last month. According to Bloomberg, these negotiations are in the "early stages."
Image Source Note: Image generated by AI, licensed by Midjourney
This funding would help alleviate the heavy debt burden of the social media platform X (formerly Twitter). The company reportedly pays as much as $200 million in debt interest monthly, with over $1.3 billion in annual interest payments at the end of last year. This financing would not only ease xAI's financial pressure but also help expand its presence in artificial intelligence and social media.
As funding negotiations progress, Musk is likely to attract investors who have previously backed his other ventures, including supporters of Tesla and SpaceX, such as Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund. Gracias even plays a significant role in Musk's "Department of Government Efficiency."
Investor interest is fueled by the growing appeal of artificial intelligence, particularly given Musk's increasing political influence. Since the Trump administration, Musk has become a prominent political figure.
x has not yet responded to the funding plans. The successful raising of this capital would have a profound impact on the industry, especially in the current climate of intense AI enthusiasm.
Key Highlights:
📈 Musk's xAI Holdings is seeking $20 billion in funding, potentially valuing it at over $120 billion.
💸 This funding would help alleviate X platform's $200 million monthly debt burden.
🤝 Musk is likely to attract investors who have previously supported his other projects.
