Musk’s xAI Holdings is reportedly raising the second-largest private funding round ever

Elon Musk’s xAI Holdings is currently in discussions to secure $20 billion in fresh funding, potentially valuing the AI and social media company at over $120 billion. This new information comes from a recent Bloomberg report, which states that the talks are still in the early stages. If successful, this funding round would be the second-largest in startup history, following OpenAI’s $40 billion raise last month.

The injection of funds could help alleviate X’s significant debt burden, which has been costing the company $200 million in monthly servicing fees. Bloomberg’s sources also mention that the annual interest expenses exceeded $1.3 billion by the end of last year.

This substantial raise would not only demonstrate the continued appeal of AI to investors but also highlight Elon Musk’s unexpected influence as a political figure within the White House of President Trump.

It is anticipated that Musk will attract support from familiar backers who have consistently invested in his other ventures such as Tesla and SpaceX. These backers may include Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund. Gracias has even taken on a role as a key figure in Musk’s Department of Government Efficiency.

At the time of writing, xAI has not yet provided a response to requests for comment.