Elon Musk’s xAI Seeks $20 Billion Funding Round, Eyes $120 Billion Valuation

Elon Musk’s AI company, xAI Holdings, is reportedly in talks to raise up to $20 billion in fresh funding, which could boost its valuation to over $120 billion, according to Bloomberg News.

The discussions are ongoing with multiple investors, and sources say the final funding amount may exceed $20 billion. This marks a significant leap in valuation for the AI firm, following its recent acquisition of the social media platform X (formerly Twitter).

xAI Valuation Skyrockets After X Acquisition

Last month, xAI acquired X in an all-stock transaction that valued Musk’s artificial intelligence startup at $80 billion and X at $33 billion. The strategic merger aimed to combine xAI’s cutting-edge AI models and technology with X’s global user base and distribution capabilities.

“xAI and X’s futures are intertwined,” Musk said in an announcement on the platform. “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”

Musk Seeks ‘Proper Value’ for xAI

Earlier in the month, CNBC reported that Musk was focused on assigning a “proper value” to xAI during a call with investors, though he did not confirm any imminent fundraising at the time. However, sources indicated a major funding round was in preparation.

xAI has not officially commented on the reported funding discussions. The startup, launched by Musk in 2023, is positioning itself as a major player in the artificial intelligence industry, challenging competitors like OpenAI and Google DeepMind.