According to reports, Elon Musk's xAI Holdings is negotiating with potential investors to raise an additional $20 billion for his recently combined social networking platform and artificial intelligence business, xAI.
Reports suggest that Musk may use this new investment to pay off the debt he accrued when he acquired Twitter, which he later relaunched as X after going private.
According to reports, the corporation would be worth over $120 billion after the deal.
The round's sum has not yet been determined, and terms could vary, it added, adding that the amount could exceed $20 billion.
Elon Musk's artificial intelligence company, xAI, and X, formerly known as Twitter, merged to establish xAI Holdings, which was introduced in March.
Reports claims that a portion of the expected investment would be used to pay down the large debt Musk accumulated when he took Twitter private and later relaunched it as X.
According to reports, the business spent almost $200 million in takeover-related service expenses in March alone.
Interest payments might surpass $1.3 billion annually by the end of 2024, according to projections.
Since the merger, Musk and his group have been discreetly contacting possible investors to see if they would be interested in funding the newly established company.
The objective of the ongoing finance talks is to raise money over the next few months, but they are still in their early phases.
Musk's prominence as a well-known businessman and political person, in addition to the robust investor interest in AI businesses, is reflected in the size of this impending investment round.
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Although he is anticipated to leave Washington soon, Musk, a close acquaintance of former President Donald Trump, has been instrumental in establishing policy and placing important allies in high-level government positions since Trump's ascent to power.