Big Tech

Musk, xAI sells shares and is now worth 113 billion

Meanwhile, Morgan Stanley is offering the market a USD 5 billion debt package

1' min read

1' min read

xAI, Elon Musk's artificial intelligence company, is about to launch a $300 million share sale at a price that values the entire company at $113 billion. This was reported by the Financial Times, pointing out that the transaction will allow the entry of new investors and confirm the valuation established when X was acquired last March.

The offer is expected to be followed by a larger investment round in which the company will offer new shares to potential shareholders. The takeover of X had valued the entire group at USD 113 billion, including USD 80 billion for xAI and USD 33 billion for X. In October 2022, Musk had bought X, then Twitter, for $44 billion.

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This move comes after Musk left his role in the Trump administration's Department of Government Efficiency (DGE) following internal disagreements. Musk said he wanted to return to focusing fully on his companies, including Tesla, xAI and X, stating that he wanted to 'sleep in server rooms and work around the clock'.

Meanwhile, according to Bloomberg, Morgan Stanley is offering the market a $5 billion debt package for xAI.

The package, launched in recent hours, includes a term loan B, a fixed-rate loan and senior secured bonds.

The proceeds will be used for general corporate purposes. Expressions of interest from investors are expected by 17 June.

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