xAI Holdings aims for $120 billion valuation with fresh $20 billion fund raise: Report

Elon Musk’s xAI Holdings is in talks with investors to raise around $20 billion in a deal that would value the company at more than $120 billion, according to sources cited by Bloomberg. If the deal goes through, it would be the second largest funding round of all time, behind only OpenAI’s $40 billion financing earlier this year.

Notably, xAI Holdings was formed last month following the merger of xAI (the company behind popular chatbot Grok) and X (the social media platform formerly known as Twitter). Musk had bought Twitter at a valuation of $44 billion in late 2022, but sold the company to his own AI startup for $33 billion in March.