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Musk’s xAI Lures Investors to Sweetened $5 Billion Debt Deal

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By Gowri Gurumurthy and Rachel Graf

June 20, 2025 at 8:16 AM EDT

Updated on

June 20, 2025 at 5:18 PM EDT

Elon Musk’s artificial intelligence startup xAI Corp. lured enough investors to its $5 billion debt deal by offering sweeter pricing on Friday.

Morgan Stanley wrapped up commitments for the package, which included a mix of bonds and loans, with higher interest rates and a bigger discount on one component.