Elon Musk’s xAI Seeks $20 Billion in Funding, Set to Become Second-Largest Startup Raise in History

In Brief:

xAI Holdings is aiming to raise over $20 billion, potentially valuing the company above $120 billion.

The round would rank just behind OpenAI’s record-setting $40 billion raise earlier this year.

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According to sources cited by Jinshi and PANews, Elon Musk’s xAI Holdings is negotiating with investors to raise approximately $20 billion for its newly integrated AI and social media business. If successful, it would mark the second-largest startup fundraising round in history, following only OpenAI’s $40 billion raise earlier in 2024.

The funding would value xAI at over $120 billion. Discussions are ongoing and terms are not yet finalized, with the company targeting completion of the raise in the coming months.

xAI Holdings was officially formed in March 2025 after Musk merged the X platform (formerly Twitter) with his AI company xAI. Sources suggest part of the new capital could be used to help repay debt from Musk’s earlier acquisition of Twitter.

This massive fundraising effort reflects both surging investor appetite for AI-driven companies and Musk’s continuing dominance as a business and political figure on the global stage.

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