Elon Musk’s XAI Holdings is in talks with buyers to raise roughly $20 billion in funding for his newly mixed synthetic intelligence startup and social media enterprise, in accordance to individuals accustomed to the matter.
If accomplished, the possible deal could be the second-largest startup funding spherical of all time, in accordance to knowledge supplier PitchBook, trailing solely OpenAI’s $40 billion financing earlier this yr. The transaction would worth the corporate at greater than $120 billion, stated one of many individuals, all of whom requested not to be recognized as a result of the data is personal.
XAI didn’t instantly reply to requests for remark.
Introduced in March, XAI Holdings was created from the mix of X, previously Twitter, and Musk’s AI enterprise, xAI. The brand new funding could possibly be used to pay down among the debt that Musk took on when he transformed Twitter into a non-public firm, later renaming it X, one individual stated.
That debt has been weighing on X, Bloomberg beforehand reported. In March alone, X paid about $200 million in debt-servicing prices associated to its buyout, in accordance to individuals briefed on the matter. The agency’s annual curiosity expense by the tip of 2024 was greater than $1.3 billion.
For the reason that merger, Musk and associates have been sounding out buyers on their urge for food to put more cash into the mixed entity, among the individuals stated. The talks for a potential spherical are in the early levels, and the corporate goals to raise the funds over the following few months.
The quantity in the spherical may rise larger than $20 billion, one of many individuals stated. The overall hasn’t but been determined, and phrases may change, the individuals stated.
The dimensions of the brand new funding spherical underscores each buyers’ enthusiasm for AI firms, and Musk’s standing as a enterprise titan and political energy participant. Musk, a key ally of President Donald Trump, is anticipated to quickly go away Washington, however has made sweeping adjustments in authorities since Trump’s election and put in key allies in highly effective positions there.
Whereas the fortunes of Tesla Inc. — Musk’s publicly traded enterprise — have faltered, the valuations at his personal companies have continued to climb. For instance, Musk’s rocket firm, SpaceX, grew to become essentially the most invaluable startup in historical past after a non-public transaction final yr valued the enterprise at $350 billion.
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Printed on April 26, 2025
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