Elon Musk’s xAI eyes $113 billion valuation amid debt sale led by Morgan Stanley: Report

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Elon Musk’s artificial intelligence venture, xAI, is reportedly seeking a $113 billion valuation in a new share sale while simultaneously raising $5 billion in debt.

According to Bloomberg, Morgan Stanley has launched a sale of debt instruments for xAI, which include a floating-rate term loan, a fixed-rate term loan, and senior secured notes. Early pricing discussions suggest a high cost of borrowing, with interest rates as steep as 12% on the senior notes. Commitments are due by June 17, reports suggest.

The proceeds from the debt raise will go…



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Elon Musk’s xAI eyes $113 billion valuation amid debt sale led by Morgan Stanley: Report


Elon Musk’s artificial intelligence venture, xAI, is reportedly seeking a $113 billion valuation in a new share sale while simultaneously raising $5 billion in debt.

According to Bloomberg, Morgan Stanley has launched a sale of debt instruments for xAI, which include a floating-rate term loan, a fixed-rate term loan, and senior secured notes. Early pricing discussions suggest a high cost of borrowing, with interest rates as steep as 12% on the senior notes. Commitments are due by June 17, reports suggest.

The proceeds from the debt raise will go…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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