(Reuters) – Morgan Stanley is shopping a $5 billion debt package for Elon Musk’s xAI and the artificial intelligence company is seeking a valuation of $113 billion in a share sale worth $300 million, according to media reports on Monday.
The debt sale, launched Monday, includes a term loan B, a fixed-rate term loan and senior secured notes, Bloomberg News reported, citing a person familiar with the matter, and added that the proceeds will go towards general corporate purposes. Commitments are due on June 17.
The share sale would allow employees to sell shares to investors and a larger investment round is expected to follow the secondary stock offer, in which xAI will offer new equity to outside investors, the Financial Times had reported earlier on Monday, citing people close to the situation.
The AI startup acquired X, Musk’s social media business, in March.
The deal valued xAI at $80 billion and the social media platform X — formerly known as Twitter — at $33 billion, Musk had said then.
XAI did not immediately respond to a Reuters request for comment on the reports.
Musk recently stepped back from the Trump administration after the Tesla CEO ended a chaotic four-month stint leading the administration’s sweeping cost-cutting campaign at the Department of Government Efficiency. U.S. President Donald Trump, however, said Musk would remain a close adviser.
During Tesla’s earnings call in April, Musk had said he would refocus his attention on the EV maker.
XAI was launched less than two years ago and was in talks with investors to raise roughly $20 billion in funding for the combined AI startup and social media business, Bloomberg News reported in April.
(Reporting by Juby Babu in Mexico City; Editing by Pooja Desai and Alan Barona)
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