Musk's xAI raises $5bln each in fresh debt and equity, Morgan Stanley says
The $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 $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 $4.3 billion through an equity investment on top of its $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 $20 billion in equity, which would value the company at more than $120 billion, with some investors placing valuations as high as $200 billion.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
3 hours ago
- Khaleej Times
India set to contribute 20% of total global growth by 2035
India is on track to become the world's third-largest economy by 2028 and to double its gross domestic product (GDP) to $10.6 trillion by 2035, contributing 20 per cent of total global growth over the next decade, according to a new Morgan Stanley report. The bullish projection reinforces India's status as the world's fastest-growing major economy, with a combination of decentralised state-level growth, robust domestic demand, and structural policy reforms propelling its upward trajectory. A standout theme in Morgan Stanley's forecast is the rise of states as key economic engines. Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Karnataka are expected to be the first Indian states to each achieve a $1 trillion economy. Gujarat, Maharashtra, and Telangana are currently the top-performing states by GDP, while others like Uttar Pradesh, Madhya Pradesh, and Chhattisgarh have significantly climbed economic rankings over the past five years. This shift reflects the success of India's 'competitive federalism', where states are increasingly responsible for policy innovation, industrialisation, and urbanisation. The report highlights how India's decentralised growth model is underpinned by sub-national governance, with states implementing agile policies and infrastructure initiatives tailored to their local economies. This trend is driving industrial diversification, improving labour markets, and attracting foreign and domestic investments. Morgan Stanley also expects India to contribute 20 per cent of total global growth over the next decade. As multinationals seek alternatives to China in their supply chains, India is emerging as a compelling manufacturing destination. This shift is bolstered by the government's Production Linked Incentive (PLI) schemes, which are beginning to show results in the form of rising exports, industrial capacity utilisation, and new global partnerships in electronics, semiconductors, pharmaceuticals, and renewable energy. India's capital markets are also a major growth story. According to Bloomberg data, Indian benchmark indices have outperformed most emerging markets over the past three years, driven by resilient corporate earnings, strong domestic consumption, and continued infrastructure spending. Foreign portfolio investments have remained robust, and market confidence has been further reinforced by the stability of the financial system and policy continuity. According to the Asian Development Bank (ADB), India's GDP is forecast to grow 6.5 per cent in 2025 and 6.7 per cent in 2026, supported by strong domestic demand, a normal monsoon, and expected monetary easing. Inflation is also moderating, with the Consumer Price Index (CPI) dropping to 2.1 per cent in June 2025 — the lowest in 77 months — as food inflation turned negative. ADB projects inflation to remain within the Reserve Bank of India's target range at 3.8 per cent in 2025 and 4.0 per cent in 2026. The Confederation of Indian Industry (CII) echoes these sentiments, projecting India's real GDP growth to range between 6.4 and 6.7 per cent this fiscal year. This reinforces India's position as the world's fastest-growing major economy, even as global growth slows and other developing Asian economies face headwinds from trade policy shifts and weakened exports. While the broader Asia-Pacific region grapples with uncertainties — such as escalating US tariffs, slowing Chinese growth, and geopolitical tensions — India appears better insulated. ADB's Chief Economist Albert Park noted that although Asia faces a weakening external environment, economies that maintain open trade and strong investment fundamentals can sustain growth momentum — India being a prime example. Domestic indicators show a mixed short-term picture. ICRA estimates India's GDP growth in the first quarter of FY26 to range between 6.1 and 6.5 per cent, down from 7.4 per cent in the previous quarter. The slowdown is attributed to excessive rainfall affecting coal production and power generation in June. Rating agency ICRA's Business Activity Monitor showed a 5.9 per cent year-on-year rise in June, slightly easing from 6.4 per cent in May. However, GST e-way bill generation and railway freight remained robust. The core sector growth moderated to 1.7 per cent in June, with weak performance in crude oil, refinery products, and electricity. Passenger vehicle and two-wheeler sales also slowed, alongside some softening in rural and urban labour market indicators. However, financial conditions have eased across markets, supported by policy rate cuts and improved liquidity. Despite short-term fluctuations, ICRA maintains a full-year GDP growth forecast of 6.2 per cent for FY26, assuming a well-distributed monsoon, stable crude oil prices around $70 per barrel, and continued rural demand. Risks remain, particularly from global economic volatility, energy market fluctuations, and escalating trade tensions.
Khaleej Times
4 hours ago
- Khaleej Times
Trump, EU chief seek deal in transatlantic tariffs standoff
US President Donald Trump and EU chief Ursula von der Leyen prepared to meet Sunday in Scotland in a push to resolve a months-long transatlantic trade standoff that is going down to the wire. Trump has said he sees a 50-50 chance of reaching a deal with the European Union, having vowed to hit dozens of countries with punitive tariffs unless they hammer out a pact with Washington by August 1. The EU is currently facing the threat of an across-the-board levy of 30 percent from that date. Von der Leyen's European Commission, negotiating on behalf of the EU's member countries, has been pushing hard for a deal to salvage a trading relationship worth an annual $1.9 trillion in goods and services. Any deal with the United States will need approval by all 27 member states. EU ambassadors, on a visit to Greenland, were to meet Sunday morning to discuss the latest negotiations -- and again after any accord. Sunday's sit-down between Trump and the EU chief was to take place at 4:30 pm (1530 GMT) in Turnberry, on Scotland's southwestern coast, where Trump owns a luxury golf resort. The 79-year-old American leader said Friday he hoped to strike "the biggest deal of them all" with the EU. "I think we have a good 50-50 chance" of a deal, the president said, citing sticking points on "maybe 20 different things". He praised von der Leyen as "a highly respected woman" -- a far cry from his erstwhile hostility in accusing the EU of existing to "screw" the United States. But late-night EU talks with US Commerce Secretary Howard Lutnick on Saturday to hammer out the final details were "combative at times," The Financial Times reported. As of Saturday evening, there were "still quite a few open questions" -- notably on pharmaceutical sector tariffs, said one EU diplomat. Tariff levels on the auto sector were also crucial for the Europeans -- notably France and Germany -- and the EU has been pushing for a compromise on steel that could allow a certain quota into the United States before tariffs would apply. Baseline 15% According to European diplomats, the deal on the table involves a baseline levy of around 15 percent on EU exports to the United States -- the level secured by Japan -- with carve-outs for critical sectors including aircraft, lumber and spirits excluding wine. The EU would commit to ramp up purchases of US liquefied natural gas, along with a series of investment pledges. Hit by multiple waves of tariffs since Trump reclaimed the White House, the EU is currently subject to a 25-percent levy on cars, 50 percent on steel and aluminium, and an across-the-board tariff of 10 percent, which Washington threatens to hike to 30 percent in a no-deal scenario. The EU has focused on getting a deal with Washington to avoid sweeping tariffs that would further harm its sluggish economy, with retaliation as a last resort. While 15 percent would be much higher than pre-existing US tariffs on European goods -- at 4.8 percent -- it would mirror the status quo, with companies already facing an additional flat rate of 10 percent. Should talks fail, EU states have greenlit counter tariffs on $109 billion (93 billion euros) of US goods including aircraft and cars to take effect in stages from August 7. Brussels is also drawing up a list of US services to potentially target. Beyond that, countries like France say Brussels should not be afraid to deploy a so-called trade "bazooka" -- EU legislation designed to counter coercion through trade measures which involves restricting access to its market and public contracts. But such a step would mark a major escalation with Washington. Ratings dropping Trump has embarked since returning to power on a campaign to reshape US trade with the world. But polls suggest the American public is unconvinced, with a recent Gallup survey showing his approval rating at 37 percent -- down 10 points from January. Having promised "90 deals in 90 days," Trump's administration has so far unveiled five, including with Britain, Japan and the Philippines. Early Sunday, ahead of his meeting with Von der Leyen, Trump was out again on the golf course, having spent most of Saturday playing at Turnberry amid tight security. The trip to Scotland has put physical distance between Trump and the scandal around Jeffrey Epstein, the wealthy financier accused of sex trafficking who died in prison in 2019 before facing trial. In his heyday, Epstein was friends with Trump and others in the New York jet-set, but the president is facing backlash from his own MAGA supporters demanding access to the Epstein case files. With the uproar refusing to die down, a headline agreement with the EU -- in addition to bolstering Trump's dealmaker credentials -- could bring a welcome distraction.
Zawya
5 hours ago
- Zawya
ADFD advances Maldives aviation sector through the Inauguration of Velana International Airport project
Abu Dhabi, UAE – Aligned with its commitment to its strategic sustainable development goals, Abu Dhabi Fund for Development (ADFD) participated in the inauguration the Velana International Airport, a landmark project that aims to significantly enhance Maldives' infrastructure. With a total investment of AED 330.5 million (USD 90 million) from ADFD, the project was implemented in two phases, receiving co-financing from Saudi Fund for Development, Kuwait Fund for Arab Economic Development, and OPEC Fund for International Development. This cooperation highlights the shared commitment of regional development institutions to support high impact projects in developing nations to contribute to an inclusive, sustainable growth. Attending the inauguration ceremony, which coincided with Maldives' 60th independence anniversary, were His Excellency Dr. Mohamed Muizzu, President of the Republic of Maldives, His Excellency Mohamed Saif Al Suwaidi, Director-General of ADFD, and His Excellency Rahma bin Abdulrahman Al Shamsi, UAE Ambassador to the Republic of Maldives, along with senior officials from both nations and from Saudi Fund for Development, Kuwait Fund for Arab Economic Development, and OPEC Fund for International Development. ADFD's funding played a critical role in enhancing the operational capacity of Velana International Airport, accommodating over 7 million passengers annually meeting the nation's growing travel demand. The project included the expansion of the airport's western passenger terminal, the implementation of 26 passenger boarding bridges, and the construction of a state-of-the-art international terminal. These enhancements reinforce the Maldives' position as a key hub for commercial, tourism, and investment activities, and underscore the Fund's commitment to supporting impactful, sustainable projects that improve the quality of life in communities. H.E. Dr. Mohamed Muizzu, President of the Republic of Maldives, during the ceremony, expressed his sincere appreciation to His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, for the continuous support from the UAE to advance Maldives' national goals. He said: "ADFD's financing of Velana International Airport, in partnership with international collaborators, reflects our shared commitment to achieving sustainable development goals and demonstrates a long-term strategic vision for infrastructure development and growth in developing nations. The opening of this airport will further enhance the Maldives' position in the global aviation sector." His Excellency Mohamed Saif Al Suwaidi, Director-General of ADFD, highlighted that this collaborative development is a testament to ADFD's dedication to supporting the sustainable development goals of its partner nations. He reaffirmed the Fund's mission towards strengthening strategic partnerships between regional development institutions and international organizations, fostering broader and more sustainable developmental impacts. Al Suwaidi said: 'Through our partnership with the Government of Maldives and regional development institutions, we have collectively contributed to country's economic and social growth. Coinciding with the Maldives' Independence Day celebrations, the inauguration of Velana International Airport underscores our ongoing commitment to ensuring greater resource efficiency and supporting our partner nations to build a resilient economy and prosperous future.' ADFD's partnership with Maldives dates to 1978. Over the past four decades, the Fund financed 11 strategic projects with a total investment of AED 1.11 billion, spanning across key sectors including transportation, tourism, healthcare, and energy. ADFD played a critical role in supporting Maldives' economic activities and enabling the country to achieve its sustainable development objectives.
