Elon Musk’s XAI Holdings is in talks to raise $ 20 billion in new funding, potentially valuing the IA and social media combo to more than $ 120 billion, according to a new Bloomberg report that says the discussions are in the “first stages”. In case of success, the agreement would be the second largest finance round for startups, behind an increase of $ 40 billion in Openai last month.
Funding could help alleviate the burden of X’s substantial debt, which costs the company a huge 200 million dollars per month in service costs, according to Bloomberg sources, with annual interest costs exceeding $ 1.3 billion by the end of last year.
An increase in this size would also present the call of investors continues from AI, as well as reflecting the surprising emergence of Musk as a political power player inside the White House of President Trump.
Musk will probably go from some of the same donors who have always financed its companies, from Tesla to Spacex, including Antonio Gracias from Valor Equity Partners and Luke Nosek from Gigafund. Gracias even played a lieutenant role in the Musk government’s efficiency department.
XAI did not respond immediately to comment.
