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xAI Secures $10 Billion in Debt and Equity to Boost AI Development and Data Center Expansion

2 days ago

Elon Musk’s AI company, xAI, has secured a significant $10 billion in debt and equity funding, according to confirmation from Morgan Stanley on Monday. In a post on X, the financial institution disclosed that xAI had raised $5 billion in debt and an additional $5 billion through a strategic equity transaction. Morgan Stanley explained that this combination of debt and equity significantly reduces the cost of capital and increases the available resources for xAI. The funds will be used to support the company’s ongoing development of advanced AI solutions, including the construction of one of the world’s largest data centers and the enhancement of its flagship Grok platform. xAI did not immediately respond to a request for comment, which was made outside regular business hours. This latest round of funding builds upon a $6 billion raise in December from a consortium of prominent investors, including Andreessen Horowitz, BlackRock, Fidelity, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, Vy Capital, Nvidia, AMD, and Kingdom Holdings, a Saudi conglomerate. With the new equity round, xAI’s total capital raised now stands at approximately $17 billion. The substantial influx of capital underscores the growing importance of AI development and the intense competition among tech giants to lead the field. Musk’s vision for xAI, coupled with the company’s ambitious projects, has clearly garnered substantial support from both financial institutions and tech industry leaders.

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