Musk’s xAI Advances $5B Debt Sale Amid Investor Skepticism

Elon Musk's xAI is pushing forward with a $5 billion debt offering despite lingering investor concerns. Morgan Stanley, the lead underwriter, has extended the commitment deadline to June 17 to accommodate broader participation. The restructured package now includes $3 billion in bonds yielding 12.5%, alongside two term loans totaling $2 billion with adjusted pricing.

Market resistance emerged earlier this month as political tensions between Musk and former President TRUMP surfaced, compounded by questions about xAI's financial stability. The company has since amended debt terms and secured $4.3 billion in additional equity to bolster confidence. Debt components were repriced at more favorable levels, though some investors anticipated even higher yields would be necessary to close the deal.