Musk’s xAI Holdings funding round is reportedly targeting a staggering $20 billion, potentially pushing the company’s valuation north of $120 billion, according to a new Bloomberg report. If finalized, it would mark the second-largest private startup funding round in history, trailing only OpenAI’s recent $40 billion mega-raise.

Talks are still in the early stages, but insiders suggest that Musk’s xAI Holdings is well-positioned to secure the deal, given the intense investor appetite for artificial intelligence ventures. The fresh capital infusion could offer Musk’s broader empire much-needed relief, particularly X (formerly Twitter), which is grappling with crushing debt obligations estimated at $200 million per month. Annual interest expenses reportedly topped $1.3 billion by the end of 2024.

A New Chapter for Musk’s Empire

The Musk’s xAI Holdings funding efforts highlight not just the enduring magnetism of AI startups among investors but also Musk’s growing clout as a political influencer. His proximity to President Trump’s White House insiders has raised eyebrows, fueling speculation about how his ventures might benefit from political goodwill.

Musk is expected to tap his trusted circle of longtime financial backers for the round, including Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund. Both investors have been instrumental in funding Musk’s other ventures like Tesla and SpaceX, with Gracias even stepping into a government advisory role as part of Musk’s Department of Government Efficiency.

xAI Holdings declined to comment on the funding reports.

Why It Matters

The scale of Musk’s xAI Holdings funding plans underlines two major trends: the insatiable investor demand for AI-driven companies and Musk’s strategic pivot to consolidate his influence across tech, politics, and media.

Moreover, a successful $20 billion round would not only strengthen xAI’s position against rivals but could also provide Musk with the financial firepower to further integrate AI technologies into his social media, automotive, and aerospace enterprises.

As the race to dominate AI intensifies, Musk’s xAI Holdings funding ambitions are setting a new benchmark for what’s possible — and who controls the future of tech.

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