Do we now know why Elon Musk has pulled back on the salty rhetoric aimed at his former boss, Donald Trump?
Perhaps. Certainly, the furore around the fallout between arguably the two most powerful men in America hasn't helped the former's business endeavours.
A case in point: Morgan Stanley is expanding its investor outreach to secure demand for a $5bn debt raise for Elon Musk’s artificial intelligence venture, xAI.
The effort follows slower-than-expected momentum after an initial surge in interest last week. Though early orders totalled $3.5bn, the deal has yet to be oversubscribed, prompting the bank to approach smaller lenders.
The sale, which includes both fixed- and floating-rate loans alongside senior secured notes, comes as tensions between Musk and Trump rattle parts of Musk’s business empire.
Some lenders, previously drawn to Musk’s ties with Trump, are now cautious following public hostilities.
xAI, recently merged into XAI Holdings with Musk’s social media platform X, has seen its valuation nearly double to $94bn since late 2024.
While the firm is not yet profitable, investors remain drawn to its AI exposure. Morgan Stanley is aiming to close the order book by 17 June.