XAI HOLDINGS PURSUES $20 BILLION TO REDEFINE AI AND SOCIAL MEDIA

Elon Musk’s XAI Holdings, a bold fusion of his artificial intelligence venture xAI and social media platform X, is negotiating to raise $20 billion in a funding round that could value the company at over $120 billion, according to a report published this week.

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This monumental effort, poised to rank among the largest startup capital raises ever, aims to propel xAI's cutting-edge AI and enhance X's global influence, positioning XAI Holdings as a transformative force in the digital economy. For investors, technology visionaries, and millions of platform users, these talks underscore Musk’s audacious plan to merge Al innovation with social media engagement, potentially revolutionizing how people connect and access information online.

Formed through xAl's acquisition of X in March 2025, XAI Holdings seeks to harness xAl’s advanced Al, exemplified by its Grok chatbot, with X’s vast user base to create a dynamic, Al-driven ecosystem. The funds could alleviate X’s financial burdens from its 2022 Twitter buyout, accelerate Grok’s development to rival industry leaders like OpenAl, and expand X's infrastructure to compete with platforms like Meta. Amid U.S. tariffs, supply chain disruptions, and intensifying regulatory scrutiny of Al, Musk’s track record with SpaceX inspires confidence, but the talks’ early stage and economic volatility introduce risks. As XAl Holdings pursues this historic raise, its success could reshape the convergence of Al and social media, challenging established giants in a rapidly evolving industry.