Musk’s xAI Holdings is reportedly raising the second-largest private funding round ever

Elon Musk’s xAI Holdings is in talks to raise $20 billion in fresh funding, potentially valuing the AI and social media combo at over $120 billion, according to a new Bloomberg report that says talks are in the “early stages.” If successful, the deal would constitute the the second-largest startup funding round ever, behind only OpenAI’s $40 billion raise last month.

The funding could help alleviate X’s substantial debt burden, which is costing the company a whopping $200 million monthly in servicing fees, per Bloomberg’s sources, with annual interest expenses exceeding $1.3 billion by the end of last year.

A raise of this size would showcase AI’s continued investor appeal, as well as reflect Musk’s surprising emergence as a political power player inside President Trump’s White House.

Musk will likely draw from some of the same backers who’ve consistently funded his ventures, from Tesla to SpaceX, including Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund. Gracias has even taken on a role as lieutenant in Musk’s Department of Government Efficiency.

xAI didn’t respond immediately to comment.