In the global AI frenzy, XAI is seeking $20 billion in financing, which could inject new impetus into the X platform and help alleviate its heavy debt burden.
On April 26, it was reported that XAI Holdings is in talks with investors to raise approximately $20 billion for its newly merged artificial - intelligence startup and social - media business. If successful, it would value the company at over $120 billion and mark the second - largest startup funding round ever, trailing only behind OpenAI's $40 billion financing earlier this year.
The report indicated that the financing amount could exceed $20 billion, but the final figure is yet to be determined, and the terms may change. The fundraising is expected to take place in the coming months. For investors, this financing will reshape the competitive landscape of the technology industry, potentially infusing new energy into the X platform and helping to ease its heavy debt load.
Analysis suggests that although a key figure is expected to soon leave the core power circle of the government, since a certain election, extensive changes have been made within the government, and key allies have been placed in important positions.
Although the share price of a publicly - traded company once declined due to negative political news, the valuation of private companies has continued to rise. According to reports, a rocket company reached a valuation of $350 billion in a private transaction last year, becoming the most valuable startup in history.
Alleviating Debt Pressure, the X Platform Struggles On
Announced in March this year, the merger is between two companies: X (formerly Twitter) and an artificial - intelligence startup. In that deal, X was valued at $45 billion, including $12 billion in debt.
It was reported that the new funds from this financing could be used to pay off part of the debt incurred when the company was taken private and later renamed X.
Debt has always been a heavy burden on X. According to reports, in March alone, X paid approximately $200 million in debt - servicing costs related to the acquisition. By the end of 2024, the company's annual interest expense will exceed $1.3 billion.
Analysis shows that an important impact of this transaction is that it reduces the likelihood of selling shares of a certain publicly - traded company to fund XAI Holdings, which may be good news for the shareholders of that company.
