The second-largest private funding round in history is being raised by Musk’s xAI Holdings.

According to a recent Bloomberg report, xAI Holdings, which is owned by Elon Musk, is in the process of raising $20 billion in new funding.

This could potentially value the AI and social media combination at over $120 billion. If the deal is successful, it would be the second-largest startup funding round in history, trailing only OpenAI’s $40 billion raise last month.

The financing has the potential to alleviate X’s substantial debt burden, which is currently costing the company a staggering $200 million per month in servicing fees, according to Bloomberg’s sources.

Additionally, annual interest expenses are expected to exceed $1.3 billion by the end of last year.

A raise of this magnitude would also serve to emphasize the ongoing allure of AI to investors, as well as to underscore Musk’s unexpected ascension to a position of political influence within President Trump’s administration.

Antonio Gracias of Valor Equity Partners and Luke Nosek of Gigafund are among the investors who have consistently supported Musk’s ventures, including Tesla and SpaceX. Gracias has even assumed the position of lieutenant in Musk’s Department of Government Efficiency.