According to BlockBeats, Elon Musk's xAI Holdings is in discussions with investors to raise approximately $20 billion for its newly integrated artificial intelligence startup and social media operations. If successful, this funding round would be the second-largest for a startup, following OpenAI's $40 billion earlier this year, as reported by PitchBook.
Insiders suggest that the funding could exceed $20 billion, although the final amount and terms are yet to be determined. The financing would elevate the company's valuation beyond $120 billion. The negotiations are in the early stages, with the company aiming to complete the fundraising in the coming months. xAI Holdings was formed in March through the merger of the X platform, formerly known as Twitter, and Musk's AI enterprise.
A source indicated that part of the new funds might be used to repay debts incurred when Musk privatized Twitter, later renamed X. This substantial funding effort highlights investor enthusiasm for AI ventures and underscores Musk's status as a prominent business leader and influential political figure.