Morgan Stanley Facilitates $5 Billion Debt for Musk's xAI Corp
Morgan Stanley is reportedly coordinating a $5 billion debt package for Elon Musk's artificial intelligence company, xAI Corp. The funds are intended to support general corporate purposes, notably the expansion and operations of its Memphis data center, known as Colossus.
Details of the Debt Arrangement
The debt package includes several components such as a term loan B, a fixed-rate term loan, and senior secured notes. The commitments for this funding are expected by June 17. This financial initiative follows xAI's recent stock sale in which it raised approximately $300 million and its ongoing pursuit of up to $20 billion in total funding.
Backing xAI's Memphis Data Center Expansion
The Memphis-based data center, Colossus, is central to xAI's infrastructure, currently operating 200,000 GPUs dedicated to AI training. Elon Musk has disclosed plans to scale this operation further by adding up to 1 million additional GPUs in a nearby facility. The debt package will partly support these growth ambitions.
xAI Holdings and Integration with Social Media
This debt is linked to XAI Holdings, an umbrella entity that includes Musk’s AI startup and his social media platform X (previously Twitter). The integration of these ventures under XAI Holdings demonstrates Musk's strategic expansion into AI and social technology spheres.
Neuralink Raises $650 Million in Series-E Funding
In a related development, Neuralink Corp., another Musk-led company, has completed a $650 million Series-E funding round. Prominent investors such as ARK Invest, DFJ Growth, and Founders Fund have committed capital to the brain-computer interface developer.
Advancing Neural Interface Technology
- Neuralink is currently conducting clinical trials in three countries involving patients with severe paralysis.
- The device features a chip capable of processing neural signals and transmitting them to external devices like computers and smartphones.
- Five patients reportedly are using Neuralink technology to control digital and physical devices with their thoughts, indicating significant progress in enabling individuals with unmet medical needs to regain independence.
Conclusion
Elon Musk continues to leverage substantial financial resources to accelerate advancements in AI and neural technologies. The $5 billion debt package for xAI Corp and the $650 million funding round for Neuralink reflect strong investor confidence in Musk’s technological ventures, highlighting his influential role in shaping the future of artificial intelligence and brain-computer interfaces.
