Elon Musk's xAI Holdings seeks $20 billion funding, targets $120 billion valuation

Elon Musk's xAI Holdings is reportedly in discussions with investors to raise around $20 billion for its newly merged artificial intelligence and social media enterprise, which would value the company at over $120 billion. The final amount raised could exceed $20 billion, and the terms of the deal are not yet finalized. This significant funding round would follow xAI's recent acquisition of X, formerly known as Twitter, in a deal that valued the social media platform at $33 billion and enables co-investors to share in the combined entity's growth. If successful, the funding would mark one of the largest startup investments in history, second only to OpenAI's $40 billion raise earlier in the year. The move underscores Musk's ambition to combine global social media reach with advanced AI development, positioning xAI as a major competitor in the rapidly evolving AI sector.