Tesla CEO Musk’s xAI adds three banks to $5 billion debt deal - Bloomberg

Published 01/07/2025, 23:02
© Reuters

Investing.com -- Elon Musk’s artificial intelligence startup xAI Corp. added three banks to its recent $5 billion debt deal, joining Morgan Stanley (NYSE:MS) in the bond and loan sale, according to Bloomberg, citing sources familiar with the matter.

Barclays (LON:BARC) Plc, Mitsubishi UFJ (NYSE:MUFG) Financial Group Inc. and UBS Group AG (NYSE:UBS) were included in the financing arrangement at xAI’s request, as the company aimed to maintain relationships that could assist with future funding needs.

Both Barclays and MUFG have worked with Musk previously, having participated in the debt financing for his acquisition of X Holdings Corp. (formerly Twitter Inc (NYSE:TWTR).) in 2022. MUFG also has a longstanding partnership with Morgan Stanley that enables the two financial institutions to collaborate on trading and investment banking activities.

The company sought these banks’ participation specifically to preserve relationships that might prove valuable for additional financing requirements in the future.

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