Elon Musk’s xAI Holdings is reportedly seeking to raise $20 billion in new funding, a move that could push the company’s valuation past $120 billion, according to Bloomberg. Although discussions are still in the early stages, a successful deal would mark the second-largest startup funding round in history — trailing only OpenAI’s $40 billion raise last month.
The funding could provide crucial relief for X, Musk’s social media and AI platform, which is grappling with a heavy debt load. Bloomberg’s sources say the company faces monthly debt servicing costs of about $200 million, with total annual interest expenses topping $1.3 billion by the end of last year.
If secured, the new funding would also highlight the persistent appeal of AI to investors, even as market dynamics shift. It would further cement Musk’s growing influence, not just in technology but in politics, with reports suggesting he has become a notable figure in President Trump’s White House.
Musk is expected to tap familiar investors to support the round. Key names include Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund — both longtime backers of Tesla and SpaceX. In fact, Gracias has reportedly taken an active role in Musk’s newly envisioned Department of Government Efficiency.
If xAI closes this funding round, it would not only strengthen Musk’s position in the high-stakes AI race but also offer critical financial breathing room for his expanding empire across technology, media, and politics.
