Will Musk vs. Trump affect xAI’s $5 billion debt deal?

Elon Musk's online feud with President Donald Trump has drawn attention to his social media platform X, formerly known as Twitter, but it may also pose challenges for its parent company, xAI. Musk recently merged X with xAI and is reportedly seeking to raise $5 billion in debt and $300 million in a secondary sale to fund the combined entity. This financial maneuvering comes amid tensions between Musk and Trump, which have been publicly aired on their respective social media platforms.

Morgan Stanley has been involved in pitching xAI to potential investors, aiming to sell the debt at around 100 cents on the dollar. However, due to the public spat and other factors, the debt has been trading at 95 cents on the dollar. Investors have suggested that Morgan Stanley might need to offer additional incentives, such as a higher interest rate, to attract buyers.

Key takeaways

Elon Musk's online feud with President Donald Trump is impacting his social media platform X and its parent company xAI.
Musk merged X and xAI earlier this year and is seeking to raise $5 billion in debt to fund the combined company.
Morgan Stanley is pitching potential investors for xAI, but the debt is trading below its intended price.
Investors suggest Morgan Stanley may need to offer additional incentives due to declining debt prices.

Will Musk vs. Trump affect xAI’s $5 billion debt deal? | TechCrunch

Key takeaways

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