XAI Holdings of Elon Musk is in conversations with investors to raise approximately $ 20 billion in funds for its new artificial intelligence company and the social networks business, according to people’s family with the matter.
If it is complete, the possible agreement would be the start financing round of the second length of all time, according to the Pitchbook data provider, which only follows the fines of $ 40 billion OpenAi earlier this year. The transaction would value the company’s value in more than $ 120 billion, said one of the people, all of them asked not to be identified, the information is private.
XAI did not respond immediately to requests for comments.
Announced in March, XAI Holdings was created from the combination of X, previously Twitter, and Musk’s Ai Venture, XAI. The new financing could be used to pay part of the debt that Musk Toke when Twitter turned into a private company, then Renewam It X, a person said.
That debt has been heavy in X, Bloomberg reported previously. In March alone, X paid around $ 200 million in debt service costs related to your purchase, according to the people informed about the matter. The company’s annual interest expenditure for the end of 2024 was more than $ 1.3 billion.
Since the merger, Musk and Associates have been solid investors in their appetite to put more in the combined entity, said some of the people. The conversations for a possible round are in the first internships, and the company aims to raise the funds in the coming months.
The amount in the round could increase more than $ 20 billion, said one of the people. The total has not yet been decided, and the terms could change, people said.
The size of the new round of funds underlines both the enthusiasm of investors by AI companies, and Musk’s position as a business titan as a player of political power. Musk, a key ally of President Donald Trump, is expected to be the son of leaving Washington, but has made radical changes in the government since Trump’s election and installed key allies in positions put there.
While the fortune of Tesla Inc., Musk’s public contribution business has been hesitated, valuations in their private companies have continued to rise. For example, Musk’s Rocket Company, Spacex, became the most valuable startup in history after a private transaction last year valued the business at $ 350 billion.
More stories like this are notable on Bloomberg.com
Posted on April 26, 2025