Elon Musk's xAI raises $10 billion through debt and equity financing.

On July 1, The Information reported that Morgan Stanley stated that Elon Musk's xAI company has raised $5 billion in debt financing and $5 billion in equity funding. Morgan Stanley is the advisor for this debt transaction but did not disclose the specific list of debt or equity investors. xAI raised $6 billion last December from investors including Andreessen Horowitz, BlackRock, Lightspeed Venture Partners, and MGX to build AI data centers and improve its ChatGPT-like product Grok. Subsequently, xAI acquired Musk's social media company X in an all-stock transaction, and the merged company's valuation reached $113 billion. According to a source familiar with the matter, this debt financing includes: $3 billion in bonds with a yield of 12.5%, a $1 billion fixed-rate term loan with an interest rate of 12.5%, and a $1 billion term loan with an interest rate of 7.25 percentage points above the Benchmark interest rate, offered at a discount of 96 cents per dollar.