TLDR
- Elon Musk’s xAI Holdings secured $20 billion in funding at a $250 billion valuation in January 2026
- Musk’s personal fortune climbed to $780 billion, leaving him $20 billion short of an $800 billion milestone
- Early Twitter investors Prince Alwaleed, Jack Dorsey, and Larry Ellison gained billions from the xAI valuation increase
- xAI spent $7.8 billion during the first nine months of 2024 while competing in the AI industry
- Grok AI chatbot faces legal action over generating unauthorized explicit deepfake images
Elon Musk’s artificial intelligence company xAI Holdings closed a $20 billion funding round in January 2026. Private investors valued the company at $250 billion.
The valuation marks a sharp increase from the $113 billion value when Musk merged xAI with X in March 2025. Forbes confirmed the funding details this week.
Musk owns a 49% stake in xAI Holdings now worth $122 billion. The funding round added $62 billion to his personal wealth. His total net worth stands at $780 billion according to Forbes’ Real-Time Billionaires List.
The funding places Musk $20 billion away from becoming the first person ever to reach an $800 billion net worth. He currently leads the world’s second richest person, Google cofounder Larry Page, by $510 billion.
Investor Returns and Company Performance
Several billionaire investors from Musk’s 2022 Twitter purchase benefited from the xAI valuation. Prince Alwaleed Bin Talal Alsaud of Saudi Arabia owns roughly 1.6% of xAI Holdings valued at $4 billion. His total net worth reached $19.4 billion.
Twitter cofounder Jack Dorsey and Oracle cofounder Larry Ellison each hold approximately 0.8% stakes worth $2.1 billion. Dorsey’s fortune now totals $6 billion while Ellison’s stands at $241 billion. Each contributed $1 billion to Musk’s Twitter acquisition.
Bloomberg reviewed internal documents showing xAI burned $7.8 billion in cash during the first nine months of 2024. The company posted a $1.46 billion net loss by September 2024.
Financial records indicate xAI generated $107 million in quarterly revenue. The company directs funding toward building AI models designed to operate humanoid robots like Tesla’s Optimus.
Legal Issues and Business Integration
xAI’s Grok chatbot currently faces legal challenges. Ashley St. Clair filed a lawsuit Thursday claiming Grok created fake explicit images of real women. St. Clair is the mother of one of Musk’s children.
Musk has connected Grok across his business portfolio. The AI chatbot runs on X and in Tesla vehicles. SpaceX invested in xAI while purchasing hundreds of millions in Tesla batteries.
Musk’s wealth grew rapidly throughout 2025. He became the first $500 billion person in October after Tesla shares nearly doubled. SpaceX’s December valuation of $800 billion pushed him past $600 billion.
The Delaware Supreme Court later reversed a ruling that blocked $126 billion in Tesla stock options for Musk. This decision made him the first person worth $700 billion.
SpaceX represents Musk’s largest asset with his 42% stake valued at $336 billion. Tesla holdings total $307 billion including 12% of common stock and options. Tesla granted Musk a November pay package potentially worth $1 trillion if the company meets performance targets over ten years.
Only Larry Ellison previously reached $400 billion in net worth. He achieved that mark in September before his fortune declined by $159 billion.
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