Elon Musk's AI company plans to raise $20 billion, with a valuation exceeding $120 billion.

According to media reports citing sources, Elon Musk's xAI Holdings is in negotiations with investors to raise approximately $20 billion for this newly merged company. A source stated that the valuation of the company from this deal will exceed $120 billion. The total amount of funding and terms are still being determined and may change. On March 28th, Musk announced on the social media platform X that xAI will acquire X through an all-stock transaction. It is reported that the valuation of xAI from this deal is $80 billion and X is valued at $33 billion (excluding debt). Sources revealed that the combined entity, xAI Holdings, will be valued at over $100 billion (excluding debt). Musk's decision to merge X with xAI is seen as a victory for X investors, as it means they now hold stock in a new emerging AI start-up company with greater potential for growth. In announcing the deal on X, Musk said, "The future of xAI and X are closely linked, and today we take a formal step to bring together data, models, computational capabilities, distribution channels, and talent." He also mentioned that the merger will "unlock tremendous potential by combining xAI's advanced AI capabilities and expertise with X's massive influence."