From Yahoo Finance: 2025-06-02 12:43:00

Morgan Stanley is seeking a $5 billion debt package for Elon Musk’s xAI, aiming for a $113 billion valuation in a share sale worth $300 million. The debt sale includes a term loan B and senior secured notes, with proceeds for general corporate purposes. Commitments are due by June 17.

The share sale will allow employees to sell shares to investors, with a larger investment round anticipated after the secondary stock offer. xAI acquired Musk’s social media business, X, in March, valuing xAI at $80 billion and X at $33 billion. Musk recently stepped back from the Trump administration to refocus on Tesla.

XAI, launched less than two years ago, is in discussions with investors to raise $20 billion for the combined AI startup and social media business. Musk remains a close adviser to U.S. President Donald Trump. XAI did not immediately respond to requests for comment on the reports.

Read more: Musk’s xAI launches $5 billion debt sale, seeks $113 billion valuation, media reports say