Elon Musk’s artificial intelligence company xAI has raised $10 billion through a combination of debt and equity financing, according to a disclosure from Morgan Stanley. The funding is evenly split, with $5 billion raised via secured debt instruments—including term loans and notes—and the other $5 billion coming from strategic equity investments. Morgan Stanley, which is advising on the transaction, stated that the debt portion was oversubscribed, reflecting strong interest from institutional investors globally.
The newly secured capital is expected to support xAI’s growth across several fronts, including the development of its proprietary AI models, expansion of data infrastructure, and the scaling of its chatbot platform Grok. The funding will also enable xAI to invest in the construction of large-scale data centres required to power its generative AI technologies.
[Unverified] Reports also suggest that xAI has been in discussions to raise additional equity capital in the range of $10–$20 billion, which could push the company’s valuation to somewhere between $120 billion and $200 billion. However, this valuation range and further fundraising plans have not been officially confirmed by xAI or Morgan Stanley.
The $10 billion raise positions xAI as one of the most heavily funded AI startups in the industry, with strategic backing that underscores investor confidence in Musk’s vision of developing an alternative to OpenAI and other major players.