xAI raises $10bn in debt and equity to bolster AI initiatives

IshaanSci/Tech2025-07-026437

Elon Musk-backed AI company xAI has raised $5bn in debt and an additional $5bn through an equity investment.

In a statement on X, Morgan Stanley announced that the debt comprises secured notes and term loans, and the deal was oversubscribed by “prominent” global debt investors.

The blend of debt and equity financing lowers xAI's overall capital costs and significantly broadens the funding sources accessible to the company, the bank explained.

xAI will use the funds to support its development of advanced AI solutions, including the establishment of one of the world's largest data centres and the enhancement of its flagship Grok platform.

XAI Holdings, the conglomerate formed by Musk, is also in discussions to raise approximately $20bn in equity, potentially valuing the company at more than $120bn.

If successful, this funding round would be the second-largest startup funding round on record, following OpenAI's $40bn round earlier in 2025.

XAI Holdings was launched in March 2025 through the merger of xAI, and X, the platform formerly known as Twitter.

The funding comes as the European Union (EU) has initiated an inquiry into X following its acquisition by xAI, assessing potential penalties under the Digital Services Act (DSA).

The DSA links fines to global revenue, and the combined companies’ structure is under review.

Penalties could reach 6% of a company’s annual global revenue for failing to address illegal content, disinformation, or transparency requirements.

The EU's investigation into X's alleged DSA breaches began in December 2023.

Regulators have criticised X’s changes to its blue checkmark system, which was previously used for verified public profiles.

The European Commission may announce X’s first DSA fine before its August recess, although delays are possible.

"xAI raises $10bn in debt and equity to bolster AI initiatives " was originally created and published by Verdict, a GlobalData owned brand.


 


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Alessia

With the securing of $10 billion in debt and equity, xAI strengthens its position at propelling AI initiatives forward into a new era.

2025-07-04 16:46:59 reply
Aries

The recent $10bn debt and equity infusion by xAI solidifies its position as a pivotal player in the AI realm, fueling innovative initiatives that will驱动 future-oriented technological advancements.

2025-07-18 00:38:08 reply
Kaela

With a record-breaking $10 billion raised in both debt and equity to bolster its AI initiatives, xAI is poised for unprecedented growth as it aims high within the competitive world of artificial intelligence development.

2025-07-18 00:38:23 reply
Bryce

The record breaking $10 billion raised by xAI in a combination of debt and equity financing underscores the company's impressive financial strength to drive substantial investments into AI initiatives, signaling both industry confidence and its own ambitious growth trajectory.

2025-07-18 00:38:38 reply
Scott

The recent XAI's successful $10 billion fundraising in both debt and equity demonstrates a strong commitment to advancing AI initiatives, positioning the company well for driving innovation at an unprecedented scale.

2025-07-19 15:49:44 reply
Matilda

The monumental $10 billion in combined debt and equity raised by xAI signals a major commitment to scaling up AI initiatives, yet also emphasizes the need for careful stewarding of such capital as it navigates this new era's competitive landscape.

2025-07-19 15:49:58 reply
Zeke

A significant step towards fostering innovation in AI, with XAI's successful $10 billion financing round for bolstering their initiatives - demonstrating the industry-wide confidence and need to advance artificial intelligence through固定资产资金充沛。

2025-07-27 20:31:03 reply

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