Elon Musk’s XAI Holdings is moving to raise around $20 billion in new funding, aiming to grow his combined artificial intelligence and social media business.
The effort is still in early talks with investors and would put the company’s value above $120 billion if successful.
Musk is pursuing this funding to help manage the heavy debt left over from his purchase of Twitter, now renamed X. After taking Twitter private, Musk merged it with his AI startup, xAI, forming XAI Holdings in March. The new funds could ease the financial strain, as X has been carrying more than $1.3 billion in annual interest payments by the end of 2024.
Meetings with investors have been happening quietly as Musk and his team try to judge how much support they can gather. Sources say the company hopes to complete the funding round in the coming months, but the amount could even go beyond $20 billion depending on how talks develop.
This deal, if completed, would be one of the largest private funding rounds in history, second only to OpenAI’s massive $40 billion raise earlier this year. The scale of the effort shows how strong interest in AI startups remains, even as Musk’s Tesla faces challenges in the public market. Meanwhile, his private companies like SpaceX continue to set new valuation records.
Since Donald Trump returned to the presidency, Musk has also strengthened his influence in Washington by placing close allies in important roles. This growing political power, combined with Musk’s bold moves in technology, has kept investors paying attention to his every step.
Even though no final decisions have been made yet, the energy around the fundraising shows that Musk’s ambitions for XAI Holdings are just getting started. As the AI race heats up, Musk appears determined to keep his businesses at the very front of the competition.