Elon Musk’s company, xAI Holdings, is reportedly involved in discussions to secure $20 billion in new investment, a funding round that could elevate the combined artificial intelligence and social media enterprise’s valuation beyond $120 billion. According to recent reporting, the negotiations remain in their early phases. Should the talks reach fruition, this investment round would rank second all-time among private startup financings, trailing only OpenAI’s landmark $40 billion raise completed last month.
This substantial influx of capital would assist Musk’s company in managing a sizable debt load that currently demands around $200 million per month in service costs, amounting to over $1.3 billion annually as of late last year.
Beyond addressing immediate financial pressures, a successful $20 billion financing round would highlight the continued attractiveness of artificial intelligence ventures to investors. It would also reinforce Musk’s recent ascent as a significant political figure under President Trump’s administration.
The prospective funders are expected to include long-time Musk allies such as Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund, both of whom have previously supported Musk-led initiatives like Tesla and SpaceX. Gracias recently assumed an advisory role in Musk’s newly formed Department of Government Efficiency.
xAI Holdings has not yet publicly commented on these reported fundraising efforts.
