Musk’s xAI launches US$300m share sale at US$113b valuation: FT
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The news: Elon Musk’s xAI is launching a USD300 million ($462.4 million) share sale that values the group at USD113 billion, allowing staff to sell shares to new investors, the Financial Times reported citing unnamed sources.
The secondary stock offering is expected to be followed by a larger investment round in which xAI will offer new equity to outside investors, people familiar with the matter told the paper.
The numbers: In March, xAI acquired Musk’s social media platform X, valuing the group at USD113 billion, with xAI at USD80 billion and X at USD33 billion.
Meanwhile, Bloomberg reported that Morgan Stanley launched a USD5 billion debt sale for xAI, which includes a term loan B, a fixed-rate term loan and senior secured notes. Proceeds will go towards general corporate purposes.
The context: The raising comes after Musk last week stepped back the Trump administration’s cost-cutting initiative to refocus on his businesses.
Launched in 2023 to take on OpenAI and other Big Tech rivals, xAI has developed the Grok chatbot and the Colossus supercomputer cluster in Memphis, Tennessee, and has formed partnerships with Microsoft and Telegram.
The sources: Financial Times, Bloomberg
