Elon Musk’s xAI eyes $20B raise in what could be second-largest private funding ever
- Marijan Hassan - Tech Journalist
- 4 days ago
- 1 min read
According to a new report from Bloomberg, Elon Musk’s xAI Holdings is reportedly in early talks to raise a staggering $20 billion in fresh funding. If successful, the deal would rank as the second-largest private funding round in history, trailing only OpenAI’s $40 billion raise last month. The new round of funding would value xAI at over $120 billion, further cementing Musk’s growing influence in tech and politics.
Sources told Bloomberg that the funding could help offset X’s massive debt burden, which reportedly costs the company $200 million monthly just in interest payments. Annual interest expenses at X surpassed $1.3 billion by the end of last year.
Securing new capital could provide much-needed breathing room as Musk seeks to scale xAI's technologies and solidify the platform's future.
Musk is expected to tap familiar faces for the round, including Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund, both longtime backers of Tesla and SpaceX. Gracias, notably, has also taken a government role, serving as a lieutenant in Musk’s newly established Department of Government Efficiency.
xAI has yet to issue an official comment on the reported funding.
