Morgan Stanley announced that Elon Musk's AI startup, xAI, has successfully secured $5 billion in debt financing, alongside an additional $5 billion in strategic equity investment. The financing includes secured notes and term loan financing, with the issuance being oversubscribed by prominent global bond investors. This significant capital influx is intended to support xAI's ongoing development of artificial intelligence solutions, a data center, and its flagship platform, Grok.
In addition to the debt issuance, xAI is reportedly in negotiations to raise another $20 billion, potentially elevating the company's valuation to over $120 billion, with some investors valuing it as high as $200 billion.
