Elon Musk’s xAI in Talks to Raise $20 Billion in Landmark Funding Round
Elon Musk’s xAI Holdings is reportedly aiming to secure $20 billion in new investment, a move that would place it among the largest startup funding rounds in history—second only to OpenAI’s $40 billion raise earlier this year, according to a new report by Bloomberg.
Talks are still in the early stages, but if successful, the funding would boost xAI’s valuation to over $120 billion. The influx of capital could help Musk address X’s (formerly Twitter’s) substantial debt load, which sources say is costing around $200 million per month in servicing fees, with annual interest payments exceeding $1.3 billion by the end of 2024.
Investor Appeal Remains Strong
Despite broader tech market volatility, Musk appears poised to tap into AI’s continuing investor hype. He’s expected to rely on long-time backers from ventures like Tesla and SpaceX, including Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund. Notably, Gracias has recently taken a role in Musk’s newly established Department of Government Efficiency.
xAI Holdings has yet to comment on the report.
Political Influence Adds New Dynamic
Musk’s growing political clout within President Trump’s administration could add another layer of intrigue to the fundraising efforts. His increasingly high-profile role in Washington may boost investor confidence—or caution—depending on how the political winds shift.
If finalized, this funding round would further cement Musk’s position as a leading figure in both artificial intelligence innovation and startup financing, despite the turbulence currently affecting some of his other businesses, including Tesla.
