The falling - out between Musk and Trump has hindered the debt financing of xAI.

Musk's Fallout with Trump Hinders xAI's Debt Financing

Elon Musk's artificial intelligence company, xAI, was on the verge of securing a $5 billion debt financing to build new data centers and chips to fuel its business growth. However, on Thursday this week, the world's richest man damaged his relationship with US President Donald Trump. According to people familiar with the matter, Musk's bankers at Morgan Stanley now have to deal with this new complication as potential investors are trying to assess the impact of the dramatic breakdown in Musk's relationship with the president, and the cost of this debt may also be higher. But the pricing has not been determined yet, and some investors are betting that xAI may need to pay a higher price to lock in the financing. The multi-billion-dollar borrowing plan is still expected to be split into fixed-rate loans, floating-rate loans, and corporate bonds. People familiar with the matter said the plan to raise $5 billion is still progressing as scheduled.

—— Financial Times (Full Text Screenshot)

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