Latest news with #XAIHoldings
Economic Times
3 days ago
- Business
- Economic Times
Elon Musk's xAI to raise $5 billion through debt sale
Elon Musk is selling $5 billion in debt for his artificial intelligence startup, xAI, with Morgan Stanley shopping the debt at a double-digit interest rate, according to news agency debt package reportedly includes a floating-rate term loan, a fixed-rate term loan, and senior secured notes. The funds will be used for general corporate purposes, with commitments due by June17. This marks the latest in a string of fundraising efforts across Musk's business empire, as he shifts focus back to running his companies and away from political activity. The move comes shortly after Reuters reported that xAI is aiming for a $113 billion valuation in a $300 million share sale. The financing could support Musk's plans to scale up AI infrastructure, including expansion of xAI's Colossus supercomputer and the development of a data centre in Memphis, purchased in March. Early pricing discussions suggest a rate of 7 percentage points above the benchmark for the floating-rate loan and around a 12% yield on the senior notes. The debt package has already seen strong investor demand, exceeding $3.5 billion. The debt is linked to XAI Holdings, which includes both xAI and Musk's social media platform X, merged in March via an all-stock deal valued at $33 billion. In April, Bloomberg reported that XAI Holdings was in talks to raise around $20 billion from investors. Meanwhile, on Tuesday, ET reported that Musk's brain implant company Neuralink has raised $650 million in a funding round, with ARK Invest, Lightspeed, QIA, and Sequoia Capital, among others, participating."With this funding, we accelerate our path to bringing life-changing capabilities to more people, and continue pushing the boundaries of what's possible with brain-computer interfaces," the company said in an X post.
Time of India
3 days ago
- Business
- Time of India
Morgan Stanley is shopping a $5 billion debt package for the world's richest man Elon Musk, here's what it is for
Morgan Stanley is reportedly arranging a $5 billion debt package for Elon Musk's AI company xAI Corp . According to a report in Bloomberg, quoting sources familiar with the matter, this marks another fundraising effort by the world's richest man Elon Musk across his business ventures. Launched on Monday (June 2), the debt package reportedly comprises a term loan B, a fixed-rate term loan, and senior secured notes, the source said, speaking anonymously as the information is not public. The funds will support general corporate purposes, with commitments due by June 17. The debt is reportedly tied to XAI Holdings , which encompasses Musk's AI startup and his social-media platform X, formerly Twitter. xAI has been heavily investing in its Memphis data center, Colossus, which could benefit from the debt proceeds. The facility currently operates 200,000 GPUs for AI training, with plans to add 1 million more nearby, Musk revealed in a May 20 CNBC interview. This follows a Financial Times report that xAI is raising $300 million through a stock sale. Bloomberg earlier reported that XAI Holdings was seeking $20 billion in funding, reflecting strong investor interest in AI and Musk's influence as a business and political figure. Musk, a prominent supporter of President Donald Trump, recently stepped down from an administration role after driving significant government changes and placing allies in key positions following Trump's reelection. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Perdagangkan CFD Emas dengan Broker Tepercaya IC Markets Mendaftar Undo Neuralink raises $650 million Additionally, Musk's Neuralink Corp. announced a $650 million Series-E funding round, backed by investors like ARK Invest, DFJ Growth, and Founders Fund. "This funding helps us bring our technology to more people — restoring independence for those with unmet medical needs and pushing the boundaries of what's possible with brain interfaces," Neuralink said. The company is said to have started clinical trials for the device, which has a chip that processes neural signals that can be transmitted to computers or phones, in three countries. According to the company, five patients with severe paralysis are using Neuralink to control digital and physical devices with their thoughts. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
3 days ago
- Business
- Time of India
Morgan Stanley is shopping a $5 billion debt package for world's richest man Elon Musk, here's what it is for
Morgan Stanley is reportedly arranging a $5 billion debt package for Elon Musk's AI company xAI Corp . According to a report in Bloomberg, quoting sources familiar with the matter, this marks another fundraising effort by the world's richest man Elon Musk across his business ventures. Launched on Monday (June 2), the debt package reportedly comprises a term loan B, a fixed-rate term loan, and senior secured notes, the source said, speaking anonymously as the information is not public. The funds will support general corporate purposes, with commitments due by June 17. The debt is reportedly tied to XAI Holdings, which encompasses Musk's AI startup and his social-media platform X, formerly Twitter. xAI has been heavily investing in its Memphis data center, Colossus, which could benefit from the debt proceeds. The facility currently operates 200,000 GPUs for AI training, with plans to add 1 million more nearby, Musk revealed in a CNBC interview. This follows a report that xAI is raising $300 million through a stock sale. Bloomberg earlier reported that XAI Holdings was seeking $20 billion in funding, reflecting strong investor interest in AI and Musk's influence as a business and political figure. Musk, a prominent supporter of President Donald Trump, recently stepped down from an administration role after driving significant government changes and placing allies in key positions following Trump's reelection. Neuralink raises $650 million Additionally, Musk's Neuralink Corp. announced a $650 million Series-E funding round, backed by investors like ARK Invest, DFJ Growth, and Founders Fund. "This funding helps us bring our technology to more people — restoring independence for those with unmet medical needs and pushing the boundaries of what's possible with brain interfaces," Neuralink said. The company is said to have started clinical trials for the device, which has a chip that processes neural signals that can be transmitted to computers or phones, in three countries. According to the company, five patients with severe paralysis are using Neuralink to control digital and physical devices with their thoughts. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Times
27-04-2025
- Business
- Business Times
Elon Musk's XAI Holdings is in discussions to raise US$20 billion
[GERMANY] Elon Musk's XAI Holdings is in talks with investors to raise roughly US$20 billion in funding for his newly combined artificial intelligence (AI) startup and social media business, according to people familiar with the matter. If completed, the prospective deal would be the second-largest startup funding round of all time, according to data provider PitchBook, trailing only OpenAI's US$40 billion financing earlier this year. The transaction would value the company at more than US$120 billion, said one of the people, all of whom asked not to be identified because the information is private. XAI did not immediately respond to requests for comment. Announced in March, XAI Holdings was created from the combination of X, formerly Twitter, and Musk's AI venture, xAI. The new funding could be used to pay down some of the debt that Musk took on when he converted Twitter into a private company, later renaming it X, one person said. That debt has been weighing on X, Bloomberg previously reported. In March alone, X paid about US$200 million in debt-servicing costs related to its buyout, according to people briefed on the matter. The firm's annual interest expense by the end of 2024 was more than US$1.3 billion. Since the merger, Musk and associates have been sounding out investors on their appetite to put more money into the combined entity, some of the people said. The talks for a prospective round are in the early stages, and the company aims to raise the funds over the next few months. The amount in the round could rise higher than US$20 billion, one of the people said. The total has not yet been decided, and terms could change, the people said. The size of the new funding round underscores both investors' enthusiasm for AI companies, but also Musk's standing as a business titan and political power player. Musk, a key ally of President Donald Trump, is expected to soon leave Washington, but has made sweeping changes in government since Trump's election and installed key allies in powerful positions there. While the fortunes of Tesla – Musk's publicly traded business – have faltered, the valuations at his private firms have continued to climb. For example, Musk's rocket company, SpaceX, became the most valuable startup in history after a private transaction last year valued the business at US$350 billion. BLOOMBERG
Time of India
26-04-2025
- Business
- Time of India
Elon Musk's XAI Holdings is in discussions to raise $20 billion
Synopsis Announced in March, XAI Holdings was created from the combination of X, formerly Twitter, and Musk's AI venture, xAI. The new funding could be used to pay down some of the debt that Musk took on when he converted Twitter into a private company, later renaming it X, sources said.
