Elon Musk's xAI Holdings in Talks to Raise $20 Billion in Fresh Funding

Elon Musk's xAI Holdings is reportedly raising $20 billion in fresh funding, potentially valuing the AI and social media combo at over $120 billion. This would be the second-largest startup funding round ever, behind OpenAI's $40 billion raise last month. The funding could help alleviate X's substantial debt burden of $200 million monthly in servicing fees. Musk will likely draw from previous backers, including Valor Equity Partners and Gigafund.

Elon Musk's xAI Holdings is in talks with investors to raise approximately $20 billion, according to Bloomberg News [1]. This funding round, if successful, would value the company at over $120 billion. The funding is aimed at addressing xAI's substantial debt burden, which includes $200 million in monthly servicing fees. Musk was reported to be seeking to assign "proper value" to xAI [1].

The AI startup xAI recently acquired X, a social media platform, in an all-stock deal valued at $80 billion for xAI and $33 billion for X. The combination of the two companies is expected to unlock significant potential by blending xAI's advanced AI capabilities with X's massive reach [1].

Mira Murati, a prominent figure in the AI industry, is also making headlines with her new startup, Thinking Machines Lab. Murati, who previously served as OpenAI's CTO and interim CEO, is seeking a record-breaking $2 billion seed round for her new venture [2]. This would be the largest seed round in history, potentially valuing the startup at over $10 billion.

The AI sector continues to attract substantial investment, with both xAI and Thinking Machines Lab seeking significant funding. These funding rounds underscore the industry's potential and the high stakes involved in developing advanced AI technologies.

References:

[1] https://www.cnbc.com/2025/04/26/elon-musks-xai-holdings-in-talks-to-raise-20-billion.html
[2] https://www.businessinsider.com/mira-murati-openai-startup-2025-4