Elon Musk’s artificial intelligence venture, xAI, has secured $5 billion in debt financing alongside a separate $5 billion strategic equity investment, according to Morgan Stanley.
The funds will be used to develop data centres and expand the company’s AI infrastructure, including its Grok platform.
The debt package, comprising secured notes and term loans, was oversubscribed and attracted participation from major global investors.
Morgan Stanley is pleased to announce the successful completion of a $5 billion financing of Secured Notes and Term Loans for @xAI, a leading innovator in artificial intelligence technology. This transaction, which was oversubscribed and included prominent global debt investors,… pic.twitter.com/0QM5jruviN
— Morgan Stanley (@MorganStanley) June 30, 2025
While earlier reports had noted lukewarm interest, the final deal exceeded expectations. In parallel, xAI is reportedly in talks to raise a further $20 billion in equity, with valuations ranging from $120 billion to as high as $200 billion.
The funding marks a significant step as xAI seeks to scale up in an increasingly competitive AI landscape.