Musk’s xAI selling $5 billion in debt through Morgan Stanley

Morgan Stanley is shopping a $5 billion debt package for Elon Musk’s artificial intelligence company, xAI Corp., according to a person familiar with the matter, the latest fundraising move by the billionaire who is also tapping markets for fresh equity across his business empire.

The debt package, launched on Monday, includes a term loan B, a fixed-rate term loan and senior secured notes, said the person, who was not authorized to share the information publicly.

The proceeds will go toward general corporate purposes. Commitments are due on June 17.

Representatives for xAI and Morgan Stanley did not immediately provide comments.

The business seeking new debt is part of XAI Holdings, a combined entity that holds both Musk’s artificial intelligence startup and his social-media platform X, formerly known as Twitter Inc.

The company has been investing heavily in its Memphis data center, called Colossus, which the debt sale could help finance. That operation already has 200,000 graphics processing units (GPUs) training its AI systems and XAI aims to add 1 million in another location nearby, Musk said in a May 20 interview on CNBC.

News of the debt sale came shortly after a Financial Times report that xAI is selling $300 million in stock. Separately, Musk’s neurotechnology company, Neuralink Corp., said on Monday that it had raised $650 million through a Series-E round of funding from investors including ARK Invest, DFJ Growth and Founders Fund.

Bloomberg previously reported that XAI Holdings was in talks with investors to raise roughly $20 billion in funding, underscoring investors’ enthusiasm for AI companies as well as Musk’s standing as a business titan and political player.

Musk, an avid supporter of President Donald Trump, left his position within the administration last week, but made sweeping changes in government since Trump’s reelection and installed key allies in powerful positions.

This story was originally featured on Fortune.com