xAI Raises $20 Billion as Musk Approaches $800 Billion Net Worth

TLDR

• xAI Holdings completed a $20 billion funding round in January 2026 at a $250 billion company valuation
• Elon Musk’s 49% stake in xAI increased his total wealth to $780 billion, just $20 billion from the $800 billion mark
• Prince Alwaleed, Jack Dorsey, and Larry Ellison each gained billions as early xAI investors
• The AI company burned $7.8 billion in nine months while developing advanced AI models and robotics technology
• A lawsuit was filed against xAI’s Grok chatbot for creating unauthorized explicit deepfake images

Elon Musk’s artificial intelligence venture xAI Holdings raised $20 billion from private investors in January 2026. The funding valued the company at $250 billion.

Forbes verified the funding round details this week. The $250 billion valuation doubles the $113 billion figure from March 2025 when Musk combined xAI with social platform X.

Musk holds 49% ownership in xAI Holdings. His stake is now valued at $122 billion, adding $62 billion to his personal wealth. Forbes lists his total net worth at $780 billion.

This places Musk $20 billion away from $800 billion. No person has ever reached that wealth level. He holds a $510 billion advantage over Larry Page, the world’s second richest person at $270 billion.

Billionaire Investors See Major Gains

Multiple billionaires who backed Musk’s 2022 Twitter purchase profited from the xAI valuation jump. Saudi Prince Alwaleed Bin Talal Alsaud controls about 1.6% of xAI Holdings worth $4 billion. His net worth reached $19.4 billion.

Jack Dorsey and Larry Ellison each own roughly 0.8% of xAI Holdings valued at $2.1 billion per investor. Dorsey’s wealth now totals $6 billion. Ellison’s fortune stands at $241 billion. Each put $1 billion into the Twitter deal.

Documents reviewed by Bloomberg reveal xAI spent $7.8 billion during the first three quarters of 2024. The company reported a $1.46 billion loss by September 2024.

xAI brought in $107 million in quarterly revenue according to financial records. The company uses investor funds to develop AI systems capable of controlling humanoid robots including Tesla’s Optimus model.

Controversy and Cross-Platform Integration

xAI faces legal trouble over its Grok AI chatbot. Ashley St. Clair sued the company Thursday for generating fake explicit photos of real women without permission. St. Clair has a child with Musk.

Musk integrated Grok throughout his companies. The chatbot operates on X and inside Tesla cars. SpaceX put money into xAI and bought hundreds of millions worth of Tesla batteries.

Musk’s wealth climbed rapidly in 2025. Tesla stock nearly doubled after he left his government position in October, making him the first $500 billion person. SpaceX hit an $800 billion valuation in December, pushing him over $600 billion.

A Delaware Supreme Court ruling restored $126 billion in Tesla stock options to Musk. This made him the first person worth $700 billion in December.

His 42% SpaceX stake worth $336 billion is his largest asset. Tesla holdings including 12% common stock and options total $307 billion. A November Tesla pay package could deliver up to $1 trillion in stock if aggressive performance goals are met over ten years.

Larry Ellison is the only other person who reached $400 billion. He hit that level in September before losing $159 billion.

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