Elon Musk's xAI is aiming for a $5 billion debt raise led by Morgan Stanley, consisting of bonds and loans to bolster AI development. The offering includes a floating-rate loan at a competitive return, reflecting a careful lending stance in the current economic climate. Morgan Stanley's approach has shifted significantly since its previous commitments related to Musk's other ventures, showing caution in navigating potential financial risks. Additionally, there are plans for a $20 billion equity raise, which could value xAI as high as $200 billion, emphasizing Musk's determination to lead in AI innovation.
xAI's $5 billion debt offering, organized by Morgan Stanley, signifies Elon Musk's plans to expand its artificial intelligence initiatives in a challenging economic environment.
The $5 billion package for xAI comprises bonds and two loans, showcasing a strategic effort to drive artificial intelligence development amidst cautious lending.
Morgan Stanley's new cautious approach stems from lessons learned during Musk's past debt issues, aiming to reduce risks in uncertain market conditions.
Alongside the debt, xAI is exploring a $20 billion equity raise that could potentially value the company between $120 billion and $200 billion.
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