Elon Musk's xAI Holdings startup could receive the second largest funding round in startup history

xAI Holdings, founded by Elon Musk in March 2025, is in talks to raise $20 billion in funding, Bloomberg reports. That could value the company, which combines artificial intelligence xAI and social network X (formerly Twitter), at more than $120 billion.

If the deal is successful, it would be the second-largest startup funding round in history, behind only OpenAI, which raised $40 billion last month.

The funding could help xAI Holdings deal with the heavy debt load that Company X took on after Musk took it private. Monthly debt service costs are $200 million, and annual interest costs exceeded $1.3 billion by the end of last year. Musk plans to attract investors who have previously backed his projects, such as Tesla and SpaceX.

This round of funding highlights the growing interest of investors in companies working in the field of artificial intelligence, and also strengthens Musk's position as an influential businessman.