Elon Musk's artificial intelligence (AI) startup xAI has raised an additional $10 billion (approximately 13.6 trillion won) through bond issuance, loans, and the recruitment of equity investors.
According to information disclosed by the U.S. investment bank Morgan Stanley on the social networking service X (formerly Twitter) on July 1 (local time), xAI recently completed fundraising by issuing $5 billion worth of secured bonds and obtaining term loans. In addition, the company received a separate $5 billion in strategic equity investments.
Morgan Stanley stated that "major global bond investors participated in xAI's bond issuance, resulting in an oversubscription," adding, "This reflects confidence in xAI's vision to accelerate scientific discovery and advance humanity's understanding of the universe." The bank also noted, "The funds raised will be used to construct data centers and to develop xAI's cutting-edge AI solutions, including the Grok platform." Currently, xAI is making large-scale capital expenditures for AI model development, including building the world's largest data center, 'Colossus,' on a 2.11 million square meter site in Memphis, Tennessee.
CNBC commented, "As competition among AI startups in the United States intensifies, companies are raising massive amounts of capital to purchase new chips and build infrastructure," and assessed that "this fundraising by xAI will help it compete with rivals such as OpenAI and Anthropic."
Meanwhile, Bloomberg reported that the bonds and loans secured by xAI carried higher interest rates than average. According to Bloomberg, this was because there are market concerns about xAI's financial condition, and because CEO Musk has intensified conflict with President Donald Trump by opposing his 'one big beautiful bill,' leading investors to demand better terms.
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