Elon Musk's xAI Holdings is reportedly in discussions to raise $20 billion in funding, potentially valuing the company at over $120 billion. This would be the second-largest startup funding round ever, surpassed only by OpenAI's $40 billion raise.
The funds could help alleviate the debt burden of X (formerly Twitter), which is reportedly costing the company $200 million in monthly interest payments and over $1.3 billion annually. xAI was established in March 2025 through the merger of X and Musk's artificial intelligence startup, xAI.
Musk is likely to receive support from investors who previously invested in Tesla and SpaceX. xAI is also known for developing the AI chatbot Grok and the Colossus supercomputer, which uses NVIDIA Spectrum-X Ethernet networking platform to connect 100,000 NVIDIA Hopper Tensor Core GPUs. The Colossus supercomputer was built in 122 days and is located in Memphis, Tennessee.