Musk's xAI raises US$5bil each in fresh debt and equity, Morgan Stanley says
The US$5 billion raised in debt consists of financing of secured notes and term loans, Morgan Stanley in a statement posted on social media platform X. The deal was oversubscribed and included prominent global debt investors, it added.
Reuters earlier reported that xAI was on track to close on a US$5 billion debt raise led by Morgan Stanley, despite tepid investor demand. In a separate report, Bloomberg News said that xAI was in talks to raise US$4.3 billion through an equity investment on top of its US$5 billion debt funding plans.
XAI did not immediately respond to a Reuters request for comment outside regular business hours.
The proceeds will support xAI's continued development of AI solutions, a data center and its flagship Grok platform, the bank said.
Apart from selling debt, xAI has also been in talks to raise about US$20 billion in equity, which would value the company at more than US$120 billion, with some investors placing valuations as high as US$200 billion.
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