Elon Musk’s xAI In Talks For $20 Billion Funding Round

About a month after Elon Musk’s xAI Holdings acquired the X platform in an all-stock deal valuing the social media company at $33 billion, whispers have emerged that xAI is in talks with investors to raise $20 billion — a move that could push the startup’s valuation north of $120 billion. 

Citing anonymous sources, Bloomberg News reported Friday that xAI is in talks with investors to raise $20 billion. According to PitchBook data, the deal would mark the second-largest startup funding round on record, behind only OpenAI’s $40 billion raise earlier this year. The funding would push xAI’s valuation north of $120 billion if successful. 

Last week, sources told CNBC’s David Faber that Musk was seeking to place a “proper value” on xAI.

Here’s more color on Faber’s conversation with sources:

The comments came during a call with xAI investors last week, sources familiar with the matter told Faber. While the Tesla CEO didn’t explicitly address an upcoming funding round, the sources interpreted the comments as a sign that xAI is getting set up for a significant capital raise in the near future.

. . .

The sources also said the company discussed revenue at a potential run rate of $1 billion or more on the call.

Back to the Bloomberg report, Musk and xAI executives have been probing investors about their appetite for a $20 billion funding round. One source said the funding round could be much higher. 

The latest Bloomberg data shows Musk’s net worth at around $335 billion. Year-to-date, his net worth has declined by about $100 billion, with Tesla’s market capitalization halving due to gloomy sales figures and Democrats’ war on the company.

Late last year, Musk’s rocket company, SpaceX, became the most valuable startup after a private transaction valued the company at $350 billion. 

Musk’s companies include many of the technologies that will dominate 2030 and may even determine the fate of the US empire as the great power fight with China rages on.