XAI Holdings in talks to raise $20bn

GlobalData

Mon, Apr 28, 2025, 2:49 AM 1 min read

XAI Holdings, the AI and societal media conglomerate formed by Elon Musk, is successful negotiations with undisclosed investors to rise astir $20bn successful a caller backing round, reports Bloomberg citing sources.

If successful, this would beryllium the second-largest startup backing circular connected record, pursuing OpenAI's $40n earlier successful 2025.

The projected woody would spot XAI Holdings' valuation astatine much than $120bn, sources acquainted with the improvement told the publication.

The backing circular discussions are inactive successful preliminary stages, with the purpose to rise the superior during the coming months.

While the people is acceptable astatine $20bn, the last magnitude could perchance increase, and the presumption are taxable to alteration arsenic negotiations progress, the study says.

XAI Holdings was launched successful March 2025 done the merger of Musk’s AI venture, xAI, and X, the level formerly known arsenic Twitter.

According to 1 source, the raised funds could beryllium utilized to trim immoderate of the indebtedness Musk accumulated during this acquisition and privatisation of Twitter, present rebranded arsenic X.

In March 2025, X reportedly paid astir $200m successful debt-servicing costs linked to its buyout.

By the extremity of 2024, the company’s yearly involvement expenses had exceeded $1.3bn.

Musk and his squad person been exploring capitalist involvement successful the combined entity since the merger.

In February 2025, Bloomberg reported that xAI was seeking a $10bn backing round, valuing the steadfast astatine astir $75bn.