Musk’s xAI raises $10bn in debt and equity to fuel AI expansion

Elon Musk’s artificial intelligence venture xAI has raised $10 billion through a mix of debt and strategic equity investments. Wall Street bank Morgan Stanley arranged the injection, and it announced the deal on Musk's X social media platform.

The debt component includes secured notes and term loans and attracted strong investor interest. The equity raise brings in new strategic partners, though names were not disclosed.

The company has been expanding its AI infrastructure amid intensifying industry competition, and those efforts will now be supported by the new investment.

Founded in 2023, xAI is positioning Grok as a rival to other large language model platforms, with integrations into Musk’s social media company X (formerly Twitter).