Tesla CEO Elon Musk’s xAI Holdings is in talks to raise $20 billion in fresh funding, which could value the company at over $120 billion. This deal would be the second-largest startup funding round ever, behind only OpenAI’s $40 billion raise last month.
The funding could help alleviate X’s substantial debt burden, which costs the company $200 million monthly and $1.3 billion annually in interest expenses. A successful raise would also demonstrate AI’s continued investor appeal and Musk’s growing influence as a political power player.
Musk is likely to draw from familiar backers like Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund, who have consistently funded his ventures. This funding round could further solidify Musk’s position and reflect his evolving role in the White House.
Source: https://techcrunch.com/2025/04/25/musks-xai-holdings-is-reportedly-raising-the-second-largest-private-funding-round-ever