Elon Musk’s artificial intelligence startup, xAI, has successfully raised $10 billion through a combination of debt and equity financing, global investment bank Morgan Stanley announced on Monday.
The funding includes a $5 billion debt package—comprising secured notes and term loans—and an additional $5 billion in strategic equity investment. According to Morgan Stanley, the debt offering was oversubscribed and attracted participation from leading global debt investors.
The capital injection is aimed at scaling xAI’s infrastructure, particularly through the development of data centers and the continued enhancement of its flagship AI platform, Grok, amid growing competition in the artificial intelligence sector.
While xAI has not yet commented on the fundraising, the company’s financial push aligns, which revealed ongoing discussions to raise between $4.3 billion and $20 billion in equity funding. Such investments could potentially value xAI between $120 billion and $200 billion, depending on final investor assessments.
The fresh funding comes at a critical time as the global AI race intensifies, with major players such as OpenAI, Google DeepMind, and Anthropic all making significant investments in model training and infrastructure.
Morgan Stanley’s involvement highlights growing confidence in xAI’s trajectory, despite earlier concerns about investor appetite for large-scale AI ventures.