Elon Musk’s xAI Holdings is in talks to boost $20 billion in contemporary funding, doubtlessly valuing the AI and social media combo at over $120 billion, in accordance with a brand new Bloomberg report that claims talks are within the “early levels.” If profitable, the deal would represent the the second-largest startup funding spherical ever, behind solely OpenAI’s $40 billion increase final month.
The funding may assist alleviate X’s substantial debt burden, which is costing the corporate a whopping $200 million month-to-month in servicing charges, per Bloomberg’s sources, with annual curiosity bills exceeding $1.3 billion by the top of final 12 months.
A increase of this dimension would showcase AI’s continued investor attraction, in addition to replicate Musk’s stunning emergence as a political energy participant inside President Trump’s White House.
Musk will possible draw from among the identical backers who’ve constantly funded his ventures, from Tesla to SpaceX, together with Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund. Gracias has even taken on a task as lieutenant in Musk’s Department of Government Efficiency.
xAI didn’t reply instantly to remark.
