Elon Musk’s latest venture, xAI Holdings, is raising big money — and aiming even higher.
According to several reports, the company, created in March 2025 by combining Musk’s AI startup xAI and the social media platform X (formerly Twitter), is seeking about $20 billion in new funding.
If successful, the deal would value xAI Holdings at over $120 billion, making it one of the largest startup funding raises ever, second only to OpenAI’s $40 billion funding earlier this year.
Alleviating Debt Burden
On the face of it, it seems that one major reason for the funding push is debt.
Musk took on heavy debt when he acquired Twitter privately and rebranded it as X. Today, X is paying around $200 million a month just in debt costs, and more than $1.3 billion a year in interest.
According to people familiar with the talks, a significant portion of the new funding would go toward paying down that debt. Reducing the financial burden could stabilize the company’s balance sheet and give Musk more room to invest in future growth.
According to reports, institutional investors like Fidelity, T. Rowe Price, and BlackRock (BLK) are among the companies considering joining the round. Sovereign wealth funds are also said to be of interest.
Creating a Powerful Ecosystem
Beyond debt relief, Musk’s vision is clear: use X’s massive user data to supercharge AI development. By combining social media, financial tools, and AI-driven content systems, Musk hopes to create a powerful ecosystem at the intersection of technology and communication.
The talks are still early, and the final amount raised could even exceed $20 billion. However, if completed, this round would mark another milestone for Musk’s private companies, joining SpaceX’s $350 billion valuation as examples of his expanding empire.
For investors, xAI Holdings offers a bold, high-risk, high-reward opportunity backed by Musk’s name. However, it still faces heavy debt and ambitious integration challenges ahead. As of yet, xAI Holdings has not commented publicly on these reports.
Is TSLA Stock a Buy, or a Hold?
Given that xAI Holdings is a privately owned company, we take a look at Musk’s well-known and established company, Tesla. Currently, TSLA stock is considered a Hold, with an average price target of $284.74. This suggests a 0.07% downside potential.
