Musk’s XAI eyes record-breaking $20 billion in funding
A $20 billion raise is being considered by Elon Musk’s XAI to support AI projects and manage existing debt.
Elon Musk’s XAI Holdings is reportedly in discussions to secure up to $20 billion in funding. The fundraising effort, if successful, would be the second-largest of its kind, trailing only OpenAI’s record $40 billion round earlier this year.
A final amount has yet to be confirmed, with suggestions that the total could even exceed the initial target.
The funds could push XAI’s valuation to over $120 billion, significantly elevating its status in the tech sector. XAI Holdings includes Musk’s artificial intelligence company xAI and X, the social platform formerly known as Twitter.
In March, xAI officially acquired X in an all-stock transaction, valuing the companies at a combined $113 billion, with $12 billion in debt included.
Musk has stated that xAI and X will operate as a joint force, integrating AI capabilities, massive data access and wide distribution. The merged entity also acquired generative AI startup Hotshot, expanding its technology base.
A portion of the new funding may be allocated to servicing debt from Musk’s 2022 acquisition of Twitter, which has since amassed over $1.3 billion in annual interest payments.
Further funds could be channelled into developing Colossus 2, an AI supercomputer said to be equipped with one million NVIDIA GPUs. The system is estimated to cost between $35 billion and $40 billion and could be pivotal in advancing Musk’s AI ambitions.
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