xAI, the artificial intelligence company founded by Elon Musk, has raised $10 billion through a combined debt and equity deal, bringing its total funding to approximately $17 billion. Morgan Stanley, which led the financing, confirmed that $5 billion was raised in debt and another $5 billion through a strategic equity transaction.
The capital will accelerate xAI’s development of advanced AI technologies, including the expansion of its massive data center operations and the scaling of its flagship Grok platform. This latest round follows a $6 billion raise in December backed by leading investors such as Andreessen Horowitz, Fidelity, NVIDIA, AMD, and Kingdom Holdings. The hybrid financing structure significantly lowers capital costs while broadening access to institutional investment.
