Musk's xAI plans to raise $20 billion, and is expected to become the second largest startup financing in history

PANews reported on April 26 that according to Jinshi, people familiar with the matter revealed that the xAI holding company, owned by Elon Musk, is negotiating with investors to raise about $20 billion for its newly integrated artificial intelligence startup and social media business. If the deal is completed, it will become the second largest startup financing round in history, second only to OpenAI's $40 billion financing earlier this year, according to data provider PitchBook.

People familiar with the matter said that the scale of this round of financing may exceed US$20 billion, but the total amount has not been finalized and the terms may still change. This round of financing will bring the company's valuation to exceed US$120 billion. The current financing negotiations are still in their early stages, and the company aims to complete financing in the next few months. The XAI Holdings Company, announced in March this year, was formed by the merger of X Platform (formerly Twitter) and Musk's artificial intelligence company xAI. A person familiar with the matter said the new funds may be used in part to repay debts arising from Musk's privatization (later renamed X). This huge financing not only highlights investors' enthusiasm for artificial intelligence companies, but also confirms Musk's position as a business giant and political influential figure.