Elon Musk’s company “XAI” aims to raise $20 billion to integrate artificial intelligence with the “X” platform.

The artificial intelligence company “XAI,” owned by Elon Musk, is engaged in intensive talks with investors to raise approximately $20 billion to support the development of its emerging project that combines AI technologies with the social media platform “X,” according to a report published by Bloomberg.

If this funding round is completed, it will be the second-largest funding round for a startup in history, following the $40 billion raised by OpenAI earlier this year, according to data from PitchBook, a leading source of global capital market data. An informed source stated that the deal will increase XAI’s valuation to over $120 billion.

Earlier this month, Musk sought to determine the fair valuation of XAI through a phone call with investors. Although he did not officially announce a new funding round, sources confirmed that the company is preparing to raise a significant amount soon.

Bloomberg’s report noted that the funding could exceed $20 billion, though the exact figure has yet to be finalized. It is worth mentioning that XAI acquired the “X” platform through a full stock swap deal, with the AI company valued at $80 billion and the social media platform valued at $33 billion.

Following the announcement of the deal, Musk emphasized that the futures of XAI and X are closely intertwined, stating: “Today, we are officially taking a step to integrate data, models, computing, distribution, and talent. This will unleash tremendous potential by combining XAI’s capabilities with the broad reach of the X platform.”