Musk’s xAI Secures Historic Second-Largest Private Funding Round
Elon Musk’s xAI Holdings is currently negotiating to secure $20 billion in new funding, potentially elevating the AI and social media venture’s valuation to over $120 billion. According to a Bloomberg report, these discussions are still in the “early stages.” Should this funding round be successful, it would become the second-largest ever for a startup, only surpassed by OpenAI’s $40 billion raise last month.
This substantial influx of capital could significantly ease X’s heavy debt load, which costs the company around $200 million per month in servicing fees. By the end of last year, annual interest expenses had already exceeded $1.3 billion, as reported by Bloomberg sources.
Achieving a funding round of this magnitude would underscore the ongoing investor interest in AI technologies and highlight Musk’s increasing influence as a political figure within President Trump’s administration.
Musk is expected to rely on familiar investors who have supported his previous ventures, such as Tesla and SpaceX. Key figures like Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund are likely to be involved. Notably, Gracias has taken on a significant role in Musk’s Department of Government Efficiency.
As of now, xAI has not provided any comments on the matter.
(Source: TechCrunch)
