The American AI tech company founded and headed by Elon Musk – xAI has now reportedly raised USD 10 billion in debt and equity together. This update which was originally shared by Morgan Stanley on X, marks a milestone transaction with xAI.
Here’s more about it.
xAI – Raises USD 5 Billion in Debt and Another USD 5 Billion in Equity
Following the USD 6 billion Series C funding of December 2024, xAI has raised USD 5 billion in debt (~ through secured notes and term loans) and USD 5 billion in another strategic equity transaction, bringing the company’s total capital to around USD 17 billion. The American investment and financial services brand – Morgan Stanley shared the update on X, stating:
Morgan Stanley is pleased to announce the successful completion of a $5 billion financing of Secured Notes and Term Loans for xAI, a leading innovator in artificial intelligence technology. This transaction, which was oversubscribed and included prominent global debt investors, reflects confidence in xAI’s vision to accelerate scientific discovery and advance humanity’s collective understanding of the universe.
In parallel, the company separately obtained a $5 billion strategic equity investment. The combination of debt and equity reduces the overall cost of capital and substantially expands pools of capital available to xAI. The proceeds will support xAI’s continued development of cutting-edge AI solutions, including one of the world’s largest data center and its flagship Grok platform. Morgan Stanley is proud to partner with xAI in this milestone transaction, which underscores our commitment to support pioneering companies shaping the future of technology.
As mentioned above, this raised fund will directly go into building better AI infrastructure for xAI, which will further help in developing the brand’s AI chatbot – Grok. Thus, the company is expected to take its competition with other AI tech brands like OpenAI and Anthropic to a higher level.
