Elon Musk’s xAI Holdings in talks to raise $20 billion from investors, Bloomberg News reports

(Reuters) -Elon Musk’s xAI Holdings is in talks with investors to raise roughly $20 billion in funding for his newly combined artificial intelligence startup 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.

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