xAI Corp., owned by Elon Musk, issues $5 billion in bonds amid AI expansion
According to Foresight News, Elon Musk issued $5 billion in bonds for his artificial intelligence startup, xAI Corp. Sources indicate that Morgan Stanley sold xAI's debt at a double-digit interest rate. This funding is expected to support Musk's ongoing investments in AI infrastructure, especially as he plans to build a large data center in Memphis.
Insiders revealed that initial price discussions suggested that floating-rate term loans would have an interest rate 7 percentage points above the benchmark rate, while the yield on senior bonds is around 12%. The bond sale reportedly generated demand of over $3.5 billion.
Additionally, according to the Financial Times, Musk has raised $650 million for his neurotechnology company, Neuralink Corp., and sold $300 million worth of xAI shares through a secondary offering.