Elon Musk’s xAI Nears $9.3 Billion Deal Despite Trump Tensions, Eyes AI Supremacy
Elon Musk’s artificial intelligence startup, xAI, is on the verge of closing a massive $9.3 billion financing deal, even as political tensions with U.S. President Donald Trump raise eyebrows among some investors.
According to sources familiar with the matter, the funding package—coordinated by Wall Street giant Morgan Stanley—includes $5 billion in debt financing and $4.3 billion in equity. The debt component is anchored by a significant $1 billion commitment from alternative investment powerhouse TPG Angelo Gordon.
Founded in 2023, xAI was launched by Musk with a bold ambition: to rival leading generative AI giants such as OpenAI and Google. The company has since introduced its own chatbot, Grok, and is rapidly scaling operations with a heavy focus on AI infrastructure, including the development of state-of-the-art data centers.
Despite reporting a first-quarter loss of $341 million, xAI is projecting aggressive growth, forecasting a staggering $13 billion in EBITDA by 2029.
The deal has not been without turbulence. Recent friction between Musk and Trump, reportedly over political endorsements and policy disagreements, has unsettled a segment of xAI’s backers. Nonetheless, the momentum behind the financing suggests continued strong interest in Musk’s AI vision.
Final pricing and terms of the deal are expected to be announced later this week.
