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Elon Musk’s artificial intelligence venture, xAI, is reportedly seeking a $113 billion valuation in a new share sale while simultaneously raising $5 billion in debt.
According to Bloomberg, Morgan Stanley has launched a sale of debt instruments for xAI, which include a floating-rate term loan, a fixed-rate term loan, and senior secured notes. Early pricing discussions suggest a high cost of borrowing, with interest rates as steep as 12% on the senior notes. Commitments are due by June 17, reports suggest.
The proceeds from the debt raise will go…
