Not long ago, American billionaire Elon Musk merged the social network X and the startup xAI he founded into a holding structure, and now he is preparing to attract about $20 billion for its financing, as reported by Bloomberg. This will increase the holding’s capitalization to $120 billion.
Image source: xAI
If the deal goes through, the source said, it would be the second-largest startup funding round in history, after the $40 billion raised by rival startup OpenAI, which Musk also co-founded but later fell out with and is now suing its founders. The funds raised by XAI Holdings will be used in part to pay off debts incurred in 2022 after Elon Musk purchased the social network Twitter, which he later renamed X and merged with xAI in March of this year.
In March of this year alone, X had to pay $200 million in debt servicing, so the reduction in the loan principal should have a positive effect on the economy of the company owned by Musk. Interest payments alone for the past year exceeded $1.3 billion, and for a constantly reforming business, this is a serious burden.
It is assumed that Musk will try to attract the specified amount to the capital of XAI Holdings within the next few months. If all goes well, it is planned to attract more than $20 billion. The success of this venture will partly demonstrate the “unsinkability” of Musk, who is now disliked by many for his political activities and radical views.