Elon Musk’s artificial intelligence venture, xAI Holdings, is reportedly in advanced discussions with investors to secure a new round of funding totaling approximately $20 billion. According to individuals familiar with the matter, the proposed funding would push the company’s valuation to more than $120 billion, reflecting growing confidence in the firm’s role in the rapidly evolving AI landscape.
Earlier this month, Musk hinted at assigning a more “proper value” to xAI during a call with current investors. While he did not directly reference any impending fundraising activity during the conversation, those close to the matter noted that preparations for a significant capital raise were already underway. The exact amount of capital to be raised remains uncertain and could exceed the initially reported $20 billion, as final details are still being finalized.
The momentum around xAI follows its recent acquisition of X, formerly Twitter, in an all-stock transaction. That deal valued xAI at $80 billion and X at $33 billion. The strategic merger is seen as a major move to consolidate Musk’s AI ambitions with his influence in social media and digital communication.
Announcing the integration, Musk emphasized that the futures of xAI and X are closely linked. He highlighted that the merger would enable the fusion of critical resources such as data, AI models, computing infrastructure, user distribution, and human capital. Musk described the collaboration as a way to unlock immense potential by leveraging xAI’s cutting-edge artificial intelligence capabilities alongside X’s global user base and engagement.
With artificial intelligence continuing to attract significant investor interest, xAI’s rising valuation underlines its positioning as a major player in the sector. The company is reportedly working to scale its operations and advance its AI technologies amid a highly competitive environment that includes major firms like OpenAI, Anthropic, and Google DeepMind.
The timing of the funding round could coincide with broader market enthusiasm for generative AI tools and applications. Musk has consistently framed xAI as a counterweight to existing AI leaders, positioning the startup as one focused on building safe and transparent AI systems. As Musk’s various ventures increasingly intersect—from space and electric vehicles to social media and artificial intelligence—xAI appears poised to become a cornerstone in his broader vision for the future of technology.
READ MORE: