Elon Musk’s artificial intelligence company xAI is targeting a $113 billion valuation through a $300 million share sale, while Morgan Stanley is marketing a $5 billion debt package for the startup, Bloomberg reported Monday, citing a person familiar with the matter.
The debt offering, which launched Monday, includes a term loan B, a fixed-rate term loan and senior secured notes. Proceeds will be used for general corporate purposes.
Commitments are due June 17.
The share sale would allow employees to sell shares to investors. A larger investment round is expected to follow the secondary offering, in which xAI plans to offer new equity to outside investors, the Financial Times reported, citing people close to the situation.
xAI acquired X, Musk’s social media platform, in March. The deal valued xAI at $80 billion and X, formerly known as Twitter, at $33 billion, Musk said at the time.
Musk recently stepped back from the Trump administration after ending a four-month stint leading a cost-cutting initiative at the Department of Government Efficiency. President Donald Trump said Musk would continue to serve as a close adviser.
During Tesla’s April earnings call, Musk said he would shift his focus back to the electric vehicle company.
xAI, launched less than two years ago, was in talks in April to raise about $20 billion for the combined AI and social media venture, Bloomberg reported.
