Musk’s xAI Holdings is reportedly raising the second-largest private funding round ever
The Xai Holdings of Elon Musk is in conversation to collect $ 20 billion in new financing, possibly the AI and social media combination on more than $ 120 billion, according to one New Bloomberg report That says that conversations are in the ‘early stages’. If it is successful, the deal would be the second largest start-up financing round ever, behind only OpenAi’s $ 40 billion last month.
The financing could help to alleviate X’s substantial debt burden, which costs the company every month $ 200 million in service costs, per sources of Bloomberg, with annual interest costs of more than $ 1.3 billion towards the end of last year.
An increase in this size would also show AI’s continuous investors application, and reflect the surprising rise of Musk as a political power player in President Trump’s White House.
Musk will probably draw from some of the same backers who have consistently financed companies, from Tesla to SpaceX, including Antonio Gracias from Valor Equity Partners and Luke Nosek from GigaFund. Gracias has even taken a role as one lieutenant In Musk’s Department of Government Efficiency.
Xai did not immediately respond to comment.
