Elon Musk’s xAI Holdings is reportedly in discussions to raise $20 billion in new funding, which could value the AI and social media venture at over $120 billion, according to a new Bloomberg report stating that talks are still in the “early stages.” If finalized, the deal would mark the second-largest startup funding round in history, trailing only OpenAI’s $40 billion raise last month.
The potential funding could help ease X’s significant debt load, which is costing the company a staggering $200 million per month in servicing fees, Bloomberg’s sources revealed, with annual interest expenses surpassing $1.3 billion by the end of last year.
A raise of this magnitude would not only highlight investors’ sustained enthusiasm for AI but also underscore Musk’s unexpected rise as a political force within President Trump’s White House.
Musk is expected to tap some of his long-standing supporters, including Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund, who have backed previous ventures such as Tesla and SpaceX. Gracias has even assumed a role as a key figure in Musk’s Department of Government Efficiency.
xAI has not immediately responded to requests for comment.
