Elon Musk’s AI venture, xAI, secured $10 billion in a combined debt and equity funding round, according to an announcement from Morgan Stanley on Monday. The financial firm detailed that the fundraising was structured through a $5 billion debt issuance and another $5 billion strategic equity investment.
Morgan Stanley explained in a statement that this financing structure significantly lowers the overall cost of capital for xAI, while greatly expanding the company’s access to funding sources. Proceeds from this substantial investment will be channeled toward xAI’s ambitious projects, notably continuing the development of advanced artificial intelligence technologies, infrastructure build-out—including establishing one of the largest data centers globally—and further enhancing the company’s flagship Grok platform.
This recent capital injection complements a prior funding round in December, where xAI raised $6 billion from prominent investors such as Andreessen Horowitz, Blackrock, Fidelity, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, Vy Capital, Nvidia, AMD, and the Saudi-based conglomerate Kingdom Holdings.
With this latest fundraising round, xAI’s total capital raised now stands at approximately $17 billion. Representatives from xAI have not immediately returned requests for additional comment.
