Construction continues on Elon Musk's xAI supercomputer Project Colossus, which he's termed a “Gigafactory of Compute“, in Memphis, Tennessee, US, on April 11, 2025. (Reuters/Karen Pulfer Focht) E lon Musk's xAI Holdings is in talks with investors to raise roughly US$20 billion in funding for his newly combined artificial intelligence start-up and social media business, Bloomberg News reported on Friday, citing people familiar with the matter. The transaction would value the company at more than $120 billion, the report said, citing one of the people.

The amount in the round could be more than $20 billion, the report said, adding that the total had not yet been decided, and terms could change. xAI didn't immediately respond to requests for comment. xAI acquired X in a deal last month that valued the social media platform at $33 billion and allowed the value of Musk's AI firm to be shared with his co-investors in the company formerly known as Twitter.