S&P 500 slips on report Fed’s Waller leading race to replace Powell; tech shines
Investing.com-- Elon Musk’s xAI raised $5 billion apiece from a notes offering and equity investment, Morgan Stanley (NYSE:MS) said on Monday, as the start-up seeks to grow in an increasingly competitive industry.
xAI raised $5 billion from secured notes and term loans, and a separate $5 billion from a strategic equity investment, Morgan Stanley said in a social media post.
The proceeds will go towards xAI’s efforts in the AI industry, including the building of one of the world’s biggest data centers, MS said, as well as the development of its flagship Grok AI model.
Musk’s AI start-up is also in talks to raise about $20 billion in equity, which could value the company at over $120 billion, recent media reports showed.
Musk founded the start-up in early-2023, and merged it with social media platform X in March 2025.
The company built what it claims is the world’s largest supercomputer in Memphis, Tennessee, which went operational in December 2024.
xAI’s flagship Grok model is heavily integrated into the social media platform X, with Musk stating that an updated version of the model, Grok 4, will come just after July 4.