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

Elon Musk’s artificial intelligence company, xAI Holdings, is reportedly in talks with investors to raise around $20 billion, according to Bloomberg News, citing sources familiar with the discussions. The funding round would value the newly merged entity, combining Musk’s AI efforts and his social media platform X, at more than $120 billion.

While the target amount could surpass $20 billion, final figures are still under negotiation, and terms may change, sources said. xAI has not publicly commented on the potential deal.

Last month, xAI acquired X, the social media company formerly known as Twitter, in a transaction that valued the platform at $33 billion. The acquisition structure allows Musk’s co-investors in X to also share in the ownership and growth of xAI.

Founded by Musk to compete in the rapidly advancing AI industry, xAI has quickly positioned itself as a major player alongside firms like OpenAI and Anthropic. Combining the reach of a global social media platform with cutting-edge AI development, xAI’s latest funding push highlights Musk’s ambition to create a dominant force in both sectors.

The reported funding talks come as interest in AI investment remains strong, with major tech companies racing to expand their AI capabilities. A successful raise would further solidify Musk’s influence in shaping the future of artificial intelligence and online platforms.