Overview

• xAI tapped Morgan Stanley to arrange a $5 billion debt package that includes a term loan B, a fixed-rate loan and senior secured notes with commitments due June 17
• The company is selling $300 million in secondary shares to let employees cash out and outside investors buy in at a $113 billion valuation
• March’s acquisition of social media platform X valued xAI at $80 billion and X at $33 billion and underpins the combined AI-social media venture
• Funds will also support expansion of the Memphis “Colossus” data center, which currently runs 200,000 GPUs and plans to add 1 million more for AI training
• Musk has stepped back from a Trump administration advisory role to refocus on his businesses, while his Neuralink venture separately raised $650 million