According to Foresight News, Elon Musk is issuing $5 billion in bonds for his artificial intelligence startup, xAI Corp. Sources indicate that Morgan Stanley is selling xAI's debt at double-digit interest rates. This funding is expected to support Musk's continued investment in AI infrastructure, particularly as he plans to build a large data center in Memphis.
Insiders reveal that initial pricing discussions suggest that the floating-rate term loan will have an interest rate 7 percentage points above the benchmark rate, while the yield on senior bonds is approximately 12%. The bond sale has reportedly generated over $3.5 billion in demand.
Additionally, according to the Financial Times, Musk has raised $650 million for his neurotechnology company, Neuralink Corp., and sold $300 million worth of xAI stock through a secondary offering.