Elon Musk's xAI Holdings is in talks with investors to raise $20 billion in new funding, aiming to increase the company's total valuation to $120 billion. If successful, this funding round would become the second-largest private financing round in history, only behind the $40 billion raised by OpenAI earlier in 2025.
The financial negotiations began after xAI merged with the social media platform X. As a result of the merger, xAI Holdings became a company valued at $113 billion, combining $80 billion from xAI and $33 billion from X. The new funding will be used to reduce the company’s $13 billion debt and accelerate its development. The financial discussions are still in the early stages, and the final amount has not yet been determined.
xAI Holdings is collaborating with major investors such as Sequoia Capital, Andreessen Horowitz, Fidelity Management, BlackRock, Lightspeed Venture Partners, and others. The company plans to use the new funding to advance AI technologies and increase advertising revenues from the X platform.
This funding round will strengthen xAI Holdings' position in the AI field and potentially attract even larger investments in the future.
