BlockBeats News, July 1st, according to The Information, Morgan Stanley stated that Elon Musk's xAI company raised not only $5 billion in debt financing but also $5 billion in equity funding. Morgan Stanley is the advisor for this debt transaction but did not disclose the specific list of debt or equity investors.
Last December, xAI raised $6 billion from investors including Andreessen Horowitz, BlackRock, Lightspeed Venture Partners, and MGX to build an AI data center and enhance its ChatGPT-like product Grok. Subsequently, xAI acquired Musk's social media company X in an all-stock transaction, resulting in a post-merger company valuation of $113 billion.
According to a source familiar with the matter, this debt financing includes: $3 billion in bonds with a 12.5% yield, a $1 billion fixed-rate term loan at 12.5% interest, and a $1 billion term loan with an interest rate floating 7.25 percentage points above the benchmark rate, sold at a discount of $0.96 per dollar.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.