Elon Musk’s XAI Holdings is in talks with investors to raise roughly $20 billion in funding for his newly combined artificial intelligence startup and social media business - Bloomberg

Elon Musk’s XAI Holdings is in talks with investors to raise roughly $20 billion in funding for his newly combined artificial intelligence startup and social media business - Bloomberg

Elon Musk's generative artificial intelligence startup, XAI, is in talks with investors to raise approximately $20 billion in funding. The company, which recently combined its AI and social media businesses, aims to put a "proper value" on itself, according to a CNBC report [1]. This move could potentially lead to a new funding round.

XAI, which is the maker of the Grok chatbot, has previously raised significant funding. In late 2024, the company secured $6 billion in new funding, valuing it at $50 billion. This funding was partially used to build a massive data center in Memphis, equipped with 100,000 Nvidia (NVDA) H100 GPUs. Additionally, in February 2025, XAI was reportedly seeking $10 billion at a $75 billion valuation [1].

The company's latest funding round is a significant step forward, as it aims to capitalize on the growing interest in AI and its applications. Musk's leadership has been instrumental in driving XAI's growth, and the company's recent acquisitions, including the social network X (previously known as Twitter), have further bolstered its position in the market [1].

In other news, Sitch, an AI matchmaking app, has raised $2 million in pre-seed funding led by A16z Speedrun. The startup, which launched in New York City in November 2024, plans to expand to other US cities and introduce voice-based AI tools [2]. This funding round comes at a time when AI is fueling renewed interest in consumer tech, including online dating.

References:
[1] https://seekingalpha.com/news/4432824-elon-musk-wants-to-put-proper-value-on-xai-could-lead-to-new-funding-round-report
[2] https://www.businessinsider.com/ai-dating-app-sitch-raised-two-million-match-singles-2025-4