Elon Musk’s AI company xAI is pursuing a $5bn debt financing package to establish new data centers and chips, but his recent public feud with former President Donald Trump has complicated investor confidence. Initially, over $4bn in orders were placed for the deal, but concerns regarding Musk’s ties to Trump and the company’s financial viability may lead to increased borrowing costs. Despite these challenges, Morgan Stanley is still working to finalize the financing terms by June 17, amid investor scrutiny over xAI’s revenue potential and collateral value.
