Latest news with #xAICorp
Bloomberg
3 hours ago
- Business
- Bloomberg
Morgan Stanley Opens xAI Books With Musk in Trump Crosshairs
Even before Elon Musk and President Donald Trump's public falling out, selling debt for the tech mogul's companies has always been tricky for Morgan Stanley. But xAI Corp. was supposed to be different. Beyond the frenzy around artificial intelligence in markets of late, internal numbers, which the bank revealed to a select group of investors Thursday, show a company that anticipates generating more than $13 billion of annual earnings by 2029, according to a person with knowledge of the figures.
Bloomberg
a day ago
- Business
- Bloomberg
Elon Musk's AI Startup Set to Get Debt Backing From TPG
TPG Angelo Gordon is an anchor investor in a debt package for Elon Musk's artificial intelligence startup, xAI Corp., according to people with knowledge of the matter. The firm is investing in a loan that is part of a debt offering for xAI, which Morgan Stanley started pre-marketing in recent weeks, said the people, who asked not to be identified discussing private information.
Time of India
3 days ago
- Business
- Time of India
Musk taps investors for billions days after Washington exit
Elon Musk is selling $5 billion in debt for his artificial intelligence startup, xAI Corp. , the latest in a series of fundraising efforts across his business empire as the billionaire pivots away from politics and returns to running his various companies. Morgan Stanley is shopping the debt for xAI with a double-digit interest rate, according to people familiar with early pricing discussions. The financing could help Musk continue to spend aggressively on AI infrastructure as he builds out a massive data center in Memphis. Musk appears eager to refocus on his array of businesses after announcing last week that he would be stepping back from politics. He had spent months as a senior adviser and regular companion to President Donald Trump, for whom he campaigned in the 2024 election and was a top financial supporter. The debt package includes a floating-rate term loan, a fixed-rate term loan and senior secured notes, said the people, who are not authorized to share the information publicly. The proceeds will go toward general corporate purposes, with commitments due June 17. Early pricing discussions are 7 percentage points over the benchmark rate for the floating-rate term loan and a roughly 12% yield on the senior notes, different people with knowledge of the matter said. The debt sale has already garnered demand in excess of $3.5 billion, they added. Live Events A representative for xAI declined to comment. Morgan Stanley did not immediately provide a comment. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Musk's presence in Washington — where he oversaw a broad government cost-cutting initiative known as the Department of Government Efficiency — led to widespread criticism of him personally, but also concern about the performance of his companies. Shares at Tesla Inc., where Musk is chief executive officer, are down 20% since the inauguration. In addition to xAI's debt offering, Musk also raised $650 million for his neurotechnology company, Neuralink Corp. , and is selling $300 million in xAI stock through a secondary offering, according to the Financial Times. Investor enthusiasm Musk recently merged xAI with his social-networking platform X into a combined company called XAI Holdings . He has been investing heavily in its Memphis data center, called Colossus, which the debt sale could help finance. That operation already has 200,000 graphics processing units (GPUs) training its AI systems, and Musk aims to add 1 million in another location nearby, he said in a May 20 interview on CNBC. Bloomberg previously reported that the company was in talks with investors to raise roughly $20 billion in funding, underscoring the market's enthusiasm for AI as well as Musk's standing as a business titan and political player. Morgan Stanley has a long history of working with Musk. The bank advised him on his takeover of X — then called Twitter Inc. — in 2022 and led a group of lenders that provided debt financing for the $44 billion acquisition. They intended to immediately sell the loans to investors, but concerns about the underlying business and some of Musk's erratic decisions left banks stuck with $13 billion of risky debt on their balance sheets for more than two years. Morgan Stanley successfully re-launched the sale process this year, getting rid of the last bits of debt in April, as Musk's standing in Washington bolstered optimism about his business prospects. The early relationship between X and xAI was also marketed as a perk for investing in the platform's bonds. Between the debt sales at or near face value, the interest payments and the advisory fees, Morgan Stanley ended up profiting handsomely from the transaction.
AU Financial Review
4 days ago
- Business
- AU Financial Review
Musk's xAI launches $7.7b debt sale through Morgan Stanley
Morgan Stanley is shopping a $US5 billion ($7.7 billion) debt package for Elon Musk's artificial intelligence company, xAI Corp, according to a person familiar with the matter. The package, launched on Monday (Tuesday AEST), includes a term loan B, a fixed-rate term loan and senior secured notes, said the person, who was not authorised to share the information publicly.
Bloomberg
4 days ago
- Business
- Bloomberg
Musk's xAI Launches $5 Billion Debt Sale Through Morgan Stanley
Morgan Stanley is shopping a $5 billion debt package for Elon Musk's artificial intelligence company, xAI Corp., according to a person familiar with the matter. The package, launched on Monday, includes a term loan B, a fixed-rate term loan and senior secured notes, said the person, who was not authorized to share the information publicly.
