Elon Musk's xAI Holdings plans to raise $20 billion

Elon Musk’s company xAI Holdings is negotiating to raise a new round of funding worth $20 billion. The preliminary valuation of the combined artificial intelligence and social media venture could exceed $120 billion. The deal is in the early stages of discussion. If the round takes place, it will become the second-largest among private investments in startups.

The funds will help partially cover X's debt burden, the servicing of which costs the company approximately $200 million monthly, while annual interest expenses exceeded $1.3 billion by the end of last year.

Such large-scale financing will once again confirm the high interest of investors in AI projects and strengthen Musk's position as an influential figure in politics.

Traditional partners of Musk are expected to be among the investors — Antonio Gracias, Valor Equity Partners, and Luke Nosek, Gigafund. Gracias is also involved in Musk's initiatives to optimize government operations.

Source: TechCrunch