Elon Musk’s xAI launches $6.5 billion debt sale, seeks $146 billion valuation: Reports

SAN FRANCISCO - Morgan Stanley is shopping a US$5 billion (S$6.5 billion) debt package for Mr Elon Musk’s xAI, and the artificial intelligence (AI) company is seeking a valuation of US$113 billion in a share sale worth US$300 million, according to media reports on June 2.

The debt sale, launched on June 2, includes a term loan B, a fixed-rate term loan and senior secured notes, Bloomberg News reported, citing a person familiar with the matter, and added that the proceeds will go towards general corporate purposes. Commitments are due on June 17.

The share sale would allow employees to sell shares to investors, and a larger investment round is expected to follow the secondary stock offer, in which xAI will offer new equity to outside investors, the Financial Times had reported on June 2, citing people close to the situation.

The AI start-up acquired X, Mr Musk’s social media business, in March.

The deal valued xAI at US$80 billion and X – formerly known as Twitter – at US$33 billion, Mr Musk said then.

xAI did not immediately respond to a Reuters request for comment on the FT report

Mr Musk recently

stepped back from the Trump administration

after the Tesla chief executive ended a chaotic four-month stint leading the administration’s sweeping cost-cutting campaign. US President Donald Trump, however, said Mr Musk would remain a close adviser.

During an earnings call in April, Mr Musk said he would refocus his attention on the electric vehicle maker.

xAI was launched less than two years ago and was in talks with investors to raise roughly US$20 billion in funding for the combined AI start-up and social media business, Bloomberg News reported in April. REUTERS